Walmart profits top estimates despite slower US sales growth
A shopper pushes a cart through the parking lot of a Walmart in the morning in Wilmington, Delaware. Walmart reported lower second-quarter profits on Thursday but still topped analyst expectations as...
Walmart reported higher-than-expected profits in the second quarter of 2021, though sales growth in the United States slowed. The retailer posted profits of $6.4 billion, a 9.4% decrease from the same period last year. US comparable sales, which measure the performance of stores that have been open for at least 13 months, grew by 2.6%.
Revenue for the quarter was $187.9 billion, marking a 5.9% increase compared to the previous year. Analysts had expected profits to be lower, so Walmart's results exceeded expectations. The company's outlook for the full year reflects its ongoing focus on recovering tariff refunds through price investments. US tariff refunds contributed to Walmart's results, though price cuts partially offset this boost.
Walmart cited the negative impact of a price cap on 10 top-selling pharmaceutical products that took effect on January 1, 2021. Walmart noted that US sales were affected by this price cap, but the company continued to prioritize market share gains across income categories, particularly among upper-income households.
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