Discount retailer Walmart (WMT) has reported mixed financial results for this year’s second quarter and warned that its costs due to tariffs are rising.
The world’s largest retailer announced earnings per share (EPS) of $0.68 U.S., which was below the $0.74 U.S. expected on Wall Street.
Revenue in the quarter totaled $177.40 billion U.S., which was above the $176.16 billion U.S. consensus forecast of analysts.
Despite the mixed print, Walmart’s management team raised their full-year earnings and sales outlooks, citing continued strength from the company’s online business.
Walmart said it now expects sales to grow between 3.75% to 4.75% for the entire year, up from its previous forecast of 3% to 4% growth.
The company also raised its earnings guidance to $2.52 U.S. to $2.62 U.S., up from a prior range of $2.50 U.S. to $2.60 U.S. per share.
However, Walmart also warned that “tariff-impacted costs are continuing to drift upwards.” About a third of what Walmart sells in the U.S. comes from other parts of the world.
Comparable sales for Walmart increased 4.6% in the second quarter, excluding fuel, compared with the year-ago period, as both the grocery and health categories grew.
E-commerce sales jumped 25% globally and 26% in the U.S., as both online purchases and online advertising rose significantly.
In the U.S., Walmart said sales through store-fulfilled delivery of groceries and other items grew nearly 50% year-over-year in Q2.
WMT stock has gained 14% this year to trade at $102.57 U.S. per share.
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