Walmart’s second-quarter results indicate that despite economic challenges, consumers across the United States continue to shop at its stores, leading to an increase in market share. The company’s stock price has surged 85 percent over the past year-and-a-half, although shares dipped 4 percent in midday trading due to lower-than-expected profit and margins.
The retailer has benefited from wealthier consumers turning to its stores, concerned about the impact of tariffs on prices. Investors focused on Walmart’s gross margins for the quarter, which fell short of expectations despite the company raising its sales and profit forecasts. This led to a slight pullback on the stock price.
Walmart’s second-quarter revenue reached $177.4 billion, with adjusted earnings per share of 68 cents, below analyst expectations. Consumer sentiment has weakened due to concerns about tariffs, but Walmart’s sales have remained strong. As tariffs increase costs, Walmart expects to continue raising prices, and the impact on margins and earnings will be smaller in the current quarter.
Walmart’s e-commerce sales increased 25 percent during the second quarter, with one-third of deliveries taking three hours or less. The company expects this growth trend to continue through the third and fourth quarters.
Walmart’s total US comparable sales rose 4.6 percent, beating analysts’ estimates. The company also noted strong customer response to discounted prices and significant growth in marketplace sales. With two-thirds of what Walmart sells sourced domestically, the retailer has some insulation from tariffs compared to competitors.
Source: https://www.aljazeera.com/economy/2025/8/21/walmart-scoops-customers-from-rivals-but-warns-inventory-cost-is-rising?traffic_source=rss
