Core Viewpoint - Walmart is set to increase prices on food, electronics, and toys due to rising costs from tariffs, despite a temporary reduction in tariffs on Chinese goods [2][3]. Group 1: Company Insights - Walmart, as the largest importer of container goods in the US, sources approximately 60% of its imports from China, which significantly impacts its pricing strategy [3]. - CEO Doug McMillon emphasized that Walmart cannot absorb the increased costs from higher import taxes, indicating a direct correlation between tariffs and retail pricing [2]. - The company remains focused on long-term growth, suggesting that it has historically emerged stronger from economic uncertainties [5]. Group 2: Economic Context - US consumers are already experiencing higher prices, with consumer sentiment declining for four consecutive months, raising concerns about potential decreased demand and its effects on the broader economy [4]. - Although consumer prices rose only 2.3% annually in April, experts warn that the full impact of tariffs has yet to be felt, which could lead to steeper inflation as importers pass on costs to consumers [6]. - The US Federal Reserve has indicated a likely scenario of lower growth and higher inflation, raising concerns about potential stagflation [7]. Group 3: Market Implications - The fluctuating tariff policies are expected to create volatility in consumer prices and spending patterns, affecting overall market dynamics [8].

Core Viewpoint - Walmart is preparing to raise prices on many items due to tariffs, despite a temporary reduction in duties on Chinese imports to 30% [1][6]. Group 1: Price Increases and Tariffs - Walmart's CFO indicated that price increases are expected to occur towards the end of May and more in June, with a prediction of more markups than usual in the fiscal second quarter [2][9]. - The company relies heavily on imports, particularly from China, Mexico, Vietnam, India, and Canada, with about one-third of its products made or assembled in the U.S. [4][5]. - Tariffs on various countries, including Costa Rica, Peru, and Colombia, have increased the prices of imported goods such as bananas, avocados, coffee, and roses [5]. Group 2: Inventory Management and Consumer Behavior - Retailers, including Walmart, are managing inventory amid fluctuating tariff levels, with recent changes in duties affecting purchasing strategies [6][8]. - Consumers are making early purchases of big-ticket items due to uncertainty about future price increases, which has also led to hesitance in spending in other areas [7]. Group 3: Market Position and Strategy - Despite the challenges posed by tariffs, Walmart has maintained its sales expectations for the year and believes that higher prices could drive more shoppers to its stores [9][10]. - The company is committed to keeping price gaps with competitors consistent, even if it means sacrificing some profit margins [10][11].

Core Insights - Walmart Inc. reported first-quarter fiscal 2026 results with revenues and earnings growing year over year, surpassing Zacks Consensus Estimate [1][4] - The company is focusing on operational efficiency while enhancing customer experiences through e-commerce and new ventures [1][5] Financial Performance - Adjusted earnings per share (EPS) increased by 1.7% to 61 cents, beating the consensus estimate of 57 cents [3] - Total revenues rose 2.5% year over year to $165.61 billion, with a constant-currency growth of 4% [4] - Operating income increased by 4.3% year over year to $7.1 billion, supported by sales growth and higher membership income [8] E-commerce and New Ventures - Global e-commerce sales surged 22%, driven by store-fulfilled pickup and delivery services [5] - Membership income increased by 14.8%, while the global advertising business advanced by 50% [5] Segment Performance - Walmart U.S. net sales grew 3.2% to $112.2 billion, with e-commerce sales rising 21% [9] - Walmart International segment's net sales decreased by 0.3% to $29.8 billion, but increased by 7.8% on a constant-currency basis [11] - Sam's Club U.S. net sales increased by 5.5% to $19.7 billion, with e-commerce sales jumping 27% [14][15] Operational Metrics - Consolidated gross profit margin expanded by 12 basis points to 24.2% [6] - Operating expenses deleveraged by 6 basis points due to increased costs in various areas [7] Future Guidance - For the second quarter of fiscal 2026, Walmart expects consolidated net sales growth of 3.5-4.5% [19] - Full-year guidance includes expected consolidated net sales growth of 3-4% and adjusted EPS in the range of $2.50-$2.60 [20] Stock and Cash Position - As of the end of the quarter, Walmart had cash and cash equivalents of $9.3 billion and total debt of $52.9 billion [16] - Share repurchases amounted to $4.6 billion, with a remaining authorization of $7.5 billion [17]

Core Insights - Walmart's eCommerce performance is strong, with a 21% increase in U.S. sales and achieving profitability in U.S. eCommerce for the first time, which helps mitigate cost pressures from tariffs and supply chain issues [1][12][10] Financial Performance - First-quarter revenue growth was 2.5%, slower than projected, with U.S. comparable store sales growing by 4.5% driven by increased transactions and average ticket size [2][4] - The company anticipates sales growth of 3.5% to 4.5% in the current quarter, maintaining full fiscal year sales guidance at 4% [5] eCommerce and Membership Growth - eCommerce sales increased by 21%, with significant growth in store-fulfilled pickup and delivery, and Walmart Connect advertising growing by 31% [7][10] - Membership-related income rose by 3.8%, with Walmart+ fees experiencing double-digit growth [7][12] Tariff Impact and Cost Management - Tariffs are creating unprecedented cost pressures that Walmart cannot fully absorb due to narrow retail margins, particularly on products sourced from China [2][9] - The company is managing costs by absorbing some tariff impacts within categories and diversifying profit streams through eCommerce and advertising [10][9] Operational Insights - Delivery speed is a key driver of business, with a 91% increase in deliveries under three hours compared to the previous year [8] - Over 50% of Sam's Club members now transact digitally, indicating a shift towards omnichannel commerce [11] Market Outlook - The operating environment is fluid, making near-term earnings forecasts difficult due to the dynamic nature of tariffs and cost pressures [14][2] - The company remains cautiously optimistic, leveraging its scale and supplier base to navigate macroeconomic challenges [4][3]

Walmart (WMT -1.10%) beat estimates for the quarter, but the retail giant warned of price hikes on the horizon because of tariffs.Investors are heeding the caution, sending Walmart shares down 3% as of 10:30 a.m. ET. Too much for even Walmart to absorbWalmart earned $0.61 per share on revenue of $165.6 billion in the quarter, topping Wall Street's $0.58 per share on $164 billion expectations and reporting revenue up 2.5% year over year. Global e-commerce sales were up 22% year over year, and membership inco ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Group 1 - Walmart Inc's stock is down 3.8% to $93.20 despite beating quarterly earnings expectations and achieving its first profitable quarter for e-commerce operations [1] - Revenue for the quarter was slightly below estimates, and executives indicated that recently lowered tariffs are still "too high," potentially increasing consumer prices by June [1] - Walmart has reaffirmed its full-year sales and earnings guidance despite the current uncertainties [1] Group 2 - The options market is experiencing high activity with 92,000 calls and 76,000 puts traded, which is four times the average volume for this time [2] - The most popular options contract is the June 110 call, followed by the May 90 put, which expires at the end of tomorrow's session [2] Group 3 - Walmart's stock opened near $92 but has recovered from morning lows, working to bounce back from an early April drop below $80 due to tariff concerns [3] - The stock is currently supported by its 40-day moving average and maintains a 2% year-to-date gain despite today's decline [3]

Core Viewpoint - Walmart plans to increase prices due to the impact of tariffs on goods, indicating that the magnitude and speed of these price hikes could be unprecedented in history [1][2]. Price Increases - The company has already begun raising prices on certain items, such as bananas, which increased from 50 cents to 54 cents per pound [1]. - Walmart's Chief Financial Officer, John David Rainey, warned that consumers will see higher prices "towards the tail end of this month, and then certainly much more in June" due to the tariffs [3]. Financial Performance - Despite the challenging environment, Walmart reported strong sales, with US same-store sales increasing by 4.5% and Sam's Club by 6.7% for the three months ending May 2 [7]. - E-commerce sales in the US rose by 21%, marking the 12th consecutive double-digit gain, while global online sales increased by 22% year-over-year [7]. - However, net income fell to $4.49 billion, or 56 cents per share, down from $5.10 billion, or 63 cents per share, in the same period last year, and revenue rose about 2.5% to $161.5 billion, missing expectations of $165.84 billion [9]. Market Positioning - The company plans to absorb some tariff costs to maintain competitive pricing against rivals [4][8]. - Walmart has not canceled any orders but has reduced the size of some purchases in anticipation of customer pullback due to tariffs [11]. - The retailer expects to gain market share during the trade war, as more high-income households chose Walmart for groceries in the previous quarter [10].

Core Viewpoint - Walmart reported quarterly earnings of $0.61 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and showing a slight increase from $0.60 per share a year ago, indicating a 7.02% earnings surprise [1][2] Financial Performance - The company achieved revenues of $165.61 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.01%, and reflecting a year-over-year increase from $161.51 billion [2] - Over the last four quarters, Walmart has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - Walmart shares have increased approximately 7.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.2% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.70, with projected revenues of $174.71 billion, while the estimate for the current fiscal year is $2.59 on revenues of $702.68 billion [7] - The Zacks Rank for Walmart is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Retail - Supermarkets industry, to which Walmart belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - For the first quarter, the company grew sales by 4% and profit by 3% in constant currency [7] - Consolidated revenue increased by 4% in constant currency, despite currency headwinds reducing reported sales results by $2.4 billion [25] - Adjusted operating income grew by 3% in constant currency, with adjusted EPS of 61 cents, higher than the guided range [33] Business Line Data and Key Metrics Changes - Walmart US comp sales grew by 4.5%, aided by strong e-commerce sales growth of 21% [26] - Sam's Club US comp sales, excluding fuel, increased nearly 7%, with e-commerce growing by 27% [29] - International business sales grew by 7.8% in constant currency, driven by strength in China and Flipkart [28] Market Data and Key Metrics Changes - E-commerce globally grew by 22%, with each segment delivering growth of at least 20% [8] - In international markets, items delivered same or next day increased by 35%, with about 45% delivered in under three hours [28] - The number of deliveries in less than three hours for Walmart US grew by 91% year-on-year [9] Company Strategy and Development Direction - The company is focused on driving e-commerce growth and reshaping its business model for higher profitability [9] - The strategy includes managing inventory effectively and navigating tariff impacts while maintaining low prices [11][21] - The company aims to grow profit faster than sales, with a commitment to diversifying income streams through advertising and membership [19][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating cost pressures from tariffs and maintaining profitability [21][39] - The company anticipates that economic uncertainty may provide opportunities to gain market share [37] - Management emphasized the importance of managing inventory well in a dynamic environment [46] Other Important Information - The company achieved e-commerce profitability for the first time on a global basis [30] - Membership fee income grew nearly 15% across the enterprise, with strong growth in Sam's Club and Walmart Plus memberships [31][32] - The company repurchased $4.6 billion in stock during the first quarter, equivalent to the total for the previous year [35] Q&A Session Summary Question: E-commerce profitability and future margins - Management highlighted that e-commerce profitability was achieved globally, driven by network densification and reduced delivery costs [51][52] Question: Balancing investments and profit growth - Management stated that they are striking the right balance between investment and profit growth, with a focus on diversifying income streams [70][71] Question: Consumer behavior across income levels - Management noted growth across all income cohorts, with a focus on value and speed of delivery [75][76] Question: Capital allocation and automation investment - Management confirmed that CapEx will remain in the range of 3% to 3.5% of sales, with a focus on long-term returns [85][86] Question: Strength in advertising and integration of Vizio - Management reported strong growth in Walmart Connect and highlighted the ongoing integration of Vizio [91][92] Question: Impact of tariffs on inventory planning - Management emphasized the importance of managing replenishable items and adjusting inventory based on tariff assumptions [106][107]