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Walmart Shines Amid Tariffs, Former CEO Praises 'Firing on All Cylinders' Performance
21 Aug
Summary
- Walmart raises full-year sales and earnings forecast
- Former CEO Bill Simon says Walmart is "hitting it on all cylinders"
- Stock drops 4.5% despite strong results, analyst calls decline "bizarre"
According to Walmart's former U.S. CEO Bill Simon, the retail giant is currently "firing on all cylinders" and delivering impressive results. On August 17th, 2025, Walmart reported strong quarterly earnings, lifting its full-year sales and earnings forecast. However, the stock still slid 4.5% on the day, making it the Dow's biggest loser.
Simon, who ran Walmart U.S. from 2010 to 2014, believes the stock drop is "bizarre" given the company's performance. He cites Walmart's ability to engage shoppers with lower prices while absorbing tariffs as a key advantage. "If you liked them yesterday, I don't know why you don't love them today. Topline is growing. They're expanding their margin," Simon said on CNBC's "Fast Money."
The former CEO suggests that investors may have been hung up on Walmart's first earnings miss in more than three years, which was mostly driven by one-off expenses. However, he sees the decision to raise guidance despite tariffs as a sign of the company's strength. "As far as the tariffs go, there's no tariff impact to that business," Simon said.
Overall, Simon remains bullish on Walmart's future, contending that the pull of cheaper prices and the convenience of having groceries and general merchandise in one place will continue to attract customers.
