Walmart Inc. unveiled quarterly earnings that beat Wall Street estimates and raised its financial outlook for the year, even as it navigates rising costs from tariffs.
The retail corporation reported revenue of $177.40 billion for the quarter, exceeding expectations.
Walmart's earnings represented a significant rise in net income, reaching $7.03 billion compared to $4.50 billion in the year-ago period.
The primary factor behind the increase in earnings is a 4.6% rise in comparable sales at its U.S. stores and a 5.9% increase at Sam’s Club locations.
There is also a substantial increase in e-commerce sales, which rose to 25%, with U.S. online sales growing 26% as delivery and advertising services expanded.
Despite the strong quarterly financial reports, Chief Financial Officer John David Rainey said that the retail giant is under tremendous pressure as costs from tariffs continue to rise.
He told CNBC that the company is managing the pressure on an item-by-item basis, absorbing some costs and increasing prices on selected products while leveraging strategies such as early inventory shipments to protect margins.
Rainey said: “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.”
Looking forward, the company expects to increase net sales growth to 4.75% from 3.75%, up from prior projections and adjusted earnings per share of $2.52 to $2.62.