Summary
Walmart's second-quarter earnings report showed that more shoppers are choosing Walmart despite economic challenges. However, the company's profits fell short of expectations because of rising inventory costs. Walmart's revenue grew, but its stock price dropped due to lower-than-expected earnings and concerns about future margins.
Key Facts
- Walmart's revenue for the second quarter was $177.4 billion, slightly higher than expected.
- The company's adjusted earnings per share were 68 cents, below the expected 74 cents.
- Walmart's stock fell 4% due to missed earnings expectations.
- The retailer's gross margin was 24.5%, not meeting the forecasted 24.9%.
- Tariffs have increased Walmart's costs, as goods became more expensive.
- Walmart's online sales grew by 25% globally in the second quarter.
- Consumers, especially middle- and lower-income households, are changing their shopping habits due to higher prices.
- Walmart plans to raise some prices to manage tariff-related costs.
