By Ananya Mariam Rajesh

(Reuters) - Results from Walmart, a bellwether for the U.S. retail industry, will offer proof on Thursday why the Arkansas behemoth is best placed to navigate the uncertainty from the Trump administration's tariffs.

Walmart is among a handful of large companies that has not either pulled or slashed its forecast. The company last month reaffirmed its annual forecast, saying "nothing in the current environment changes its strategy".

Since the announcement was made minutes before U.S. imposed a 145% tariff on China - Walmart's largest supplier - investors will watch for any adjustment to the outlook and whether it absorbs any tariff-related costs or passes them on to customers.

The world's largest retailer has promised to keep prices low to keep its price advantage over competitors. Amazon.com, its fiercest rival, is also "maniacally focused" on lower prices and has encouraged sellers to move more inventory to the U.S. before tariffs take effect.

"Many consumers are prioritizing saving money and stretching their dollar a little bit further," Jefferies analyst Corey Tarlowe said.

"They're prioritizing what they need over what they want. So they're trading into value-oriented retailers...that to me paints a very clear picture that's conducive to success for Walmart."

With the U.S. and China pausing trade escalations on Monday, retailers including Walmart have had to deal with a month of elevated tariffs. Many stopped shipments from China and reached into their inventories to stock shelves.

Rival Target, unlike Walmart, expects annual sales to be flat and tariffs to weigh on its results. It reports on May 21.

Walmart said in February it expects profit growth to slow this year even as sales rise. It forecast adjusted earnings per share for the fiscal year ending January 2026 in the range of $2.50 to $2.60, and sales growth of 3% to 4%.

At that time, Trump had imposed 10% tariffs on goods from China and 25% on goods from Mexico and Canada.

"Walmart should be able to effectively manage the increase in tariffs, given its strong global sourcing operation, healthy vendor relationships, and defensive product mix," Telsey Advisory Group analyst Joseph Feldman said.

"Sales should be pretty solid and it feels like investors feel confident that Walmart will execute and operate in this environment."

Its U.S. e-commerce business will be in focus as the company has said the division will achieve profitability for the first time in the first quarter.