Walmart profits top estimates despite slower US sales growth
Walmart reported US$6.4 billion in profits, down 9.4%, as comparable sales growth eased to 2.6%.
On Thursday, Walmart reported lower second-quarter profits of US$6.4 billion, falling 9.4% from the same period last year, despite still surpassing analyst expectations. The retail giant raised its full-year profit and sales forecast to US$187.9 billion, which marked a 5.9% increase compared to last year.
US comparable sales, a key performance indicator, grew by 2.6%, slightly behind the 4.1% growth seen in the previous quarter. The positive results were primarily driven by US tariff refunds, although Walmart acknowledged that these gains were partially offset by price reductions. The company cited a negative impact on US sales from a price cap imposed on 10 top-selling pharmaceutical products effective January 1st.
Operating income growth was at the higher end of Walmart's expectations, and the company's outlook reflects the continued priority on remaining tariff refunds and price investments. As with recent quarters, Walmart's US sales were boosted by market share gains across income categories, with upper-income households leading the growth. Grocery sales experienced stronger growth than health and wellness or general merchandise categories, which encompass discretionary items like fashion.
Walmart reiterated the importance of e-commerce growth, which surged globally by 23%. The company's stock dropped 5.7% in pre-market trading following the earnings release.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Walmart profits top estimates despite slower US sales growth freemalaysiatoday.com
- Walmart posts sluggish sales with slowest U.S. growth in years financialpost.com
