Walmart(US:WMT) New York Post·2025-08-21 14:00Core Insights - Walmart reported quarterly revenue of $177.4 billion, exceeding Wall Street's expectation of $175.9 billion, marking a 4.8% increase year-over-year [1][3] - The company missed profit expectations for the first time since May 2022, with adjusted earnings at 68 cents per share, below the anticipated 73 cents [6][7] - Despite the earnings miss, Walmart raised its full-year sales forecast, now expecting net sales growth of 3.75% to 4.75% [13][15] Revenue and Sales Performance - Same-store sales increased by 4.6% year-over-year, driven primarily by strong performance in grocery and health categories [7] - Global e-commerce sales surged by 25%, with US online sales rising by 26%, indicating a shift in consumer behavior towards online shopping amid inflation [13] Cost Management and Pricing Strategy - Walmart plans to increase prices on about 10% of items to offset higher import costs due to tariffs [3][4] - The company is implementing strategies to manage costs, including speeding up imports and offering limited-time discounts [4] - Inflation-related price increases within Walmart's US operations reached 1.1% year-over-year, double the previous quarter's rate [15] Financial Outlook - Walmart's net income fell by 43% to $4.5 billion, while operating income rose by 8.5% to $7.9 billion, reflecting a complex balancing act between maintaining low prices and managing rising costs [16] - The company raised its adjusted earnings forecast for the full year to a range of $2.35 to $2.43 per share, up from $2.23 to $2.37 [14][15] Market Position and Investor Sentiment - Walmart's stock has increased by 36% over the past year, significantly outperforming the S&P 500's 14% gain, leading to a high valuation of 36 times forward earnings [17] - Analysts express mixed sentiments, with some highlighting Walmart's strong execution and market share growth, while others caution about potential economic uncertainties affecting future performance [10][18]