Financial Performance - Net sales for Q2 2025 increased to $1,183 million compared to $1,140 million in the prior year, driven by higher net sales in fresh and value-added products and banana segments[18] - Gross profit for Q2 2025 increased to $120 million compared to $113 million in the prior year, driven by higher net sales in fresh and value-added products[19] - Gross margin increased to 102% in Q2 2025, compared to 99% in the prior year[21] - Adjusted EBITDA for Q2 2025 was $954 million compared to $890 million in the prior year[55] Segment Performance - Net sales in the fresh and value-added products segment increased, driven by higher pricing in pineapple and higher sales volume and pricing in fresh-cut fruit[23] - Gross margin in the fresh and value-added products segment increased to 117% compared to 112% in the prior year[23] - Net sales in the banana segment increased, driven by higher selling prices across all regions[29] - Gross margin in the banana segment decreased to 73% compared to 76% in the prior year[28] - Net sales in other products & services decreased slightly due to lower net sales in poultry and meats[31] - Gross margin in other products & services decreased to 104% compared to 107% in the prior year[31] Other Financial Data - The company's income tax rate was 20% compared to 19% in the prior year[34] - Net cash provided by operating activities was $159 million compared to $144 million in the prior year[34] - The company declared a dividend of $030 per share versus $025 per share in the prior year[34]

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].