Today, Walmart announced its second-quarter results, reporting strong growth in revenue for each business segment.
Walmart’s Q2 revenue increased by 4.8%, or 5.6% in constant currency, while Walmart U.S. competitive sales rose 4.6%, driven by strong growth in grocery and health & wellness.
The company has decided to raise its full-year earnings and sales forecast, driven by another quarter of growth in its eCommerce sales, which increased by 25% globally despite rising costs from higher tariffs.
For fiscal 2025, Walmart announced it now expects net sales to increase between 3.75% and 4.75%, up from its previous forecast of 3% to 4%. It also slightly raised its adjusted earnings per share outlook to $2.52 to $2.62, up from a prior range of $2.50 to $2.60 per share.
Doug McMillon, President and CEO of Walmart, told investors, The top-line momentum we have in our business comes from how we’re innovating and executing. Connecting with our customers and members through digital experiences is helping to drive our business, and the way we’re deploying AI will make these experiences even better. We’re people-led and tech-powered, and I love how our associates continue to drive change and results for our company.”
In an interview after the release, Walmart CFO John David Rainey said that the company is focused on keeping prices low by speeding up overseas imports and increasing the number of Rollbacks, which are limited-time discounts available in its stores. However, “tariff-impacted costs are continuing to drift upwards.”
“This is managed on an item-by-item and category-by-category basis. There are certainly areas where we have fully absorbed the impact of higher tariff costs. There are other areas where we’ve had to pass some of those costs along… Everyone is looking to see if there are any creaks in the armor or anything that’s happening with the consumer, but it’s been very consistent,” Rainey concluded.
Walmart’s stock dropped over 2% in premarket trading following the release.
By CEO NA Editorial Staff
