Walmart Boosts Sales and Earnings Forecast Amid Tariff Challenges

Walmart’s Q2 Show‑Stopper: Sales Surpass Expectations, But Earnings Miss the Mark

Big‑box retailer Walmart kicked in the foot on the quarterly results and blew past analysts’ sales predictions, but it fell short on profits. The company’s revenue for the three months ending July 31 hit $177.4 billion, up 4.8 % year‑over‑year. Yet the adjusted earnings‑per‑share (EPS) dip to 68 cents didn’t match the market’s hopes.

Tariffs & the Price‑Shock Test

• Trump’s 10 % tariff on most imports has nudged the cost of goods into the U.S. shelves.
• Walmart had to stockpile before the tariffs hit, smoothing out the impact on shoppers.
• Economists are watching to see if the inflation bump will be a one‑off or a lasting trend.

Better Forecasts for the Rest of the Year

Walmart lifts its guidance, now expecting a 3.75‑4.75 % net‑sales hike for the fiscal year—up from the previous 3.0‑4.0 % range. Adjusted EPS estimates now sit between $2.52 and $2.62, up from $2.50‑$2.60.

What’s Going Right (and Wrong) for Walmart?

• Global e‑commerce: Up 25 % worldwide.
• US e‑commerce: Up 26 %.
• Store‑fulfilled delivery: Nearly 50 % jump.
• Grocery and health & wellness: Solid growth across the board.

Stock‑Market Snapshot

Walmart shares took a hit, falling over 3.4 % in pre‑market trading, likely because investors weighed the tariff‑driven cost pressures.

Walmart’s Take on the Tariff‑Challenge

Even after the recent tariff hikes for the EU, Japan, South Korea, and other partners, Walmart says its inventory game is strong. However, it admits that imported goods are costing more—and it might not be able to fully absorb those extra expenses.

Bottom Line

Sales are soaring, but the cost squeeze is keeping earnings in check—time will tell if this is a temporary hiccup or a new normal in the retail world.