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55m ago

Walmart Raises Outlook as Sales Beat, but Tariffs Pinch Profit

Executives expect tariff‑driven costs to keep climbing through year‑end.

FILE - Shoppers walk from the Walmart store, Aug. 14, 2025, in Manchester, N.H. (AP Photo/Charles Krupa, file)
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Overview

  • For the quarter ended July 31, revenue rose to $177.4 billion and U.S. comparable sales increased 4.6%, but adjusted EPS fell to $0.68, missing estimates as shares slipped about 4% in early trading.
  • Walmart lifted full‑year guidance to net sales growth of 3.75%–4.75% and adjusted EPS of about $2.52–$2.62, and it forecast $0.58–$0.60 in adjusted EPS for the current quarter.
  • Management said tariff‑related costs are increasing week by week and likely to continue into the third and fourth quarters, with the company using 7,400 temporary rollbacks and selective price increases to manage the impact.
  • Global e‑commerce grew 25% (26% in the U.S.) and the global advertising business rose 46%, with executives saying online profitability improved again after turning profitable earlier this year.
  • Walmart reported share gains across income tiers, with higher‑income shoppers driving strength and lower‑ and middle‑income customers trading down in some categories, as peers caution on consumer softness that Reuters says could extend into the holidays.