Walmart has raised its outlook for the year following a successful fiscal second quarter that exceeded Wall Street expectations. The retail giant reported a 5.9% increase in revenue, driven by a significant 23% jump in global e-commerce sales. According to John David Rainey, Walmart’s Chief Financial Officer, “we feel really good about the progress we’re making,” as reported by CNBC.
Despite this growth, Walmart experienced its slowest U.S. comparable sales growth in six years, at 2.6%, as reported by The Associated Press. The company attributed part of the slowdown to federal legislation capping prices on certain Medicare drugs, which affected sales in its wellness category. Nevertheless, Walmart’s quarterly profit exceeded expectations, bolstered by a $2.9 billion tariff refund following a U.S. Supreme Court ruling against tariffs imposed by President Donald Trump.
The company is using these tariff refunds to temporarily lower prices on 11,000 items, particularly groceries and general merchandise, to attract more customers. Walmart’s domestic e-commerce business, a key growth driver, rose 24%, now representing 23% of its overall U.S. business. CEO John Furner stated that as these businesses scale, they are changing the shape of Walmart’s business.
Looking ahead, Walmart expects its earnings per share to range from $2.80 to $2.87 for the full year, with sales projected to increase by 4% to 5%. This translates to a forecasted sales range of $741.7 billion to $748.8 billion, slightly below analysts’ expectations. The company continues to capture a larger share of wealthier consumers, particularly those with annual incomes over $100,000.
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