Overview
- Walmart reported revenue of $179.5 billion, up 5.8% year over year, with U.S. comparable sales rising 4.5% and adjusted operating income increasing 8%.
- Walmart raised its full-year guidance after the latest results, signaling confidence in continued momentum.
- Target posted comparable sales down 2.7% and revenue of $25.3 billion, off 1.5%, as operating margin slipped to 3.8% from 4.6% on markdowns and deleveraging.
- Target cut its adjusted EPS outlook to $7 to $8, narrowing from its prior $7 to $9 range.
- Both retailers cited an affordability crisis, with Walmart’s strength in groceries and necessities helping it outperform as its stock rose 6.5% on the earnings day while Target lagged over the past three years.