Walmart Shares Dip Today as Q2 Earnings Miss Expectations Despite Raised Outlook
Walmart Shares Dip Today as Q2 Earnings Miss Expectations Despite Raised Outlook
Walmart (WMT) shares saw an approximate 2% dip in premarket trading Thursday after the retail giant reported its fiscal second-quarter earnings, falling short of Wall Street’s profit expectations for the first time since May 2022.
Despite missing adjusted earnings per share estimates (68 cents reported vs. 74 cents expected), Walmart surpassed revenue forecasts, raking in $177.40 billion against an anticipated $176.16 billion. The company also raised its full-year earnings and sales outlook, now projecting net sales growth between 3.75% to 4.75% (up from 3%-4%) and adjusted EPS of $2.52 to $2.62 (up from $2.50-$2.60).
The big-box retailer’s online business continued its strong performance with double-digit gains. However, profits for the period were impacted by rising tariff costs and one-time expenses, including restructuring, pricier insurance claims, and litigation settlements.
Chief Financial Officer John David Rainey acknowledged the ongoing pressure from tariffs but assured that Walmart is actively working to mitigate costs and keep prices low, including speeding up imports and increasing ‘Rollbacks.’ Despite these challenges, Rainey noted consistent and resilient consumer spending, with private label sales remaining roughly flat year-over-year.
Comparable sales for Walmart U.S. climbed 4.6% excluding fuel, driven by robust growth in grocery and health and wellness. Sam’s Club also saw strong performance, with comparable sales jumping 5.9% excluding fuel.
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