Particle.news

Download on the App Store

Walmart Lifts Outlook on Strong Sales as Tariffs Squeeze Profit, Shares Slide

The stock drop reflects margin strain from tariffs, elevated labor and legal costs, a $450 million charge.

Image
El exterior de una tienda Walmart, en Walpole, Massachusetts, el 3 de septiembre de 2019. (AP Foto/Steven Senne, Archivo)

Overview

  • Quarterly revenue rose to about $177.4 billion, up roughly 4.8%, with U.S. comparable sales up 4.6% led by groceries and health and wellness, and global e-commerce growing 25%.
  • Adjusted earnings per share were $0.68 versus the $0.73 expected, as a $450 million charge and higher labor and legal expenses weighed on results.
  • Walmart raised full-year guidance to earnings of $2.52–$2.62 per share and projected net sales growth of 3.75%–4.75%.
  • Executives said new U.S. tariffs raised costs; the company lifted prices on about 10% of imported items, absorbed other increases, and pulled forward some orders to manage exposure.
  • To protect value perception, Walmart introduced 7,400 temporary in-store discounts and said average prices rose about 1%, while the stock fell roughly 4% during Thursday trading.