Walmart Raises Sales and Earnings Forecast: What It Means for Investors Amid Ongoing Tariffs
NEW YORK – Retail giant Walmart has raised its sales and some earnings forecasts despite rising costs of imported goods due to President Donald Trump’s tariffs implemented this year.
As one of the leading retailers reporting quarterly results this week, Walmart’s performance offers insight into consumer behavior and potential price increases amid tariff pressures.
For the quarter ending July 31, Walmart reported revenue of $177.4 billion, a 4.8% increase compared to the same period last year, surpassing analysts’ sales expectations. However, the company fell short of earnings estimates, with adjusted earnings per share (EPS) at 68 cents.
US businesses have faced cost challenges from tariffs, though many managed to limit consumer impact by increasing inventory ahead of the new tariffs. While the overall effect on US consumer prices remains modest so far, economists are closely watching to determine whether inflationary effects will be temporary or persistent.
In its second-quarter report, Walmart upgraded its full-year net sales forecast to a range of 3.75% to 4.75%, up from the previous estimate of 3.0% to 4.0%. The company also raised its adjusted EPS projection to between $2.52 and $2.62, compared with the prior outlook of $2.50 to $2.60 per share. Despite the positive outlook, Walmart shares dropped more than 3.4% in pre-market trading.
Walmart’s global e-commerce sales surged 25%, with international sales growth supported notably by markets such as China, Mexico, and Central America. E-commerce sales in the United States increased by 26%, the report revealed.
– AFP
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Walmart’s raised sales outlook despite tariff-driven cost pressures signals resilient consumer demand and growth potential in e-commerce, particularly in global markets like China and Mexico. For businesses in Oman, this underscores the importance of digital transformation and diversifying into international trade to mitigate supply chain risks and capitalize on expanding online retail. Smart investors should watch for opportunities in logistics, digital platforms, and cross-border commerce as retail giants navigate evolving tariff landscapes and consumer behaviors.