NEW YORK: Big-box retailer Walmart hiked its outlook for sales and some earnings in results released on Thursday, even as costs of goods imported to the United States rose after President Donald Trump's wide-ranging tariffs this year.
Walmart is among the major retailers reporting their financial results this week, with markets keeping close tabs on consumer patterns -- and signs of price increases -- as tariffs bite.
The company topped analysts' quarterly sales estimates, with revenues for the three months ending on July 31 at $177.4 billion, up 4.8 per cent from the same period a year ago.
But it missed earnings expectations with adjusted earnings-per-share (EPS) at 68 cents, lower than anticipated.
US companies have been squeezed in recent months as tariffs raised the costs of importing certain foreign goods, although many mitigated the blow to consumers by bulking up on inventory before Trump introduced the new levies.
The overall impact on US consumer prices appears limited for now but economists are closely monitoring the pass-through of costs to gauge if the inflation hit will be one-off or if there will be lingering effects.
In its second quarter results released on Thursday, Walmart raised its outlook, anticipating net sales to rise between 3.75 per cent and 4.75 per cent for the fiscal year, up from earlier expectations of 3.0 per cent to 4.0 per cent.
It also raised its adjusted EPS outlook to a range of $2.52 to $2.62, up from $2.50 to $2.60 per share before. Walmart shares fell more than 3.4 per cent in pre-market trading.
Among segments, its global e-commerce sales rose 25 per cent. Walmart noted that net sales growth internationally was boosted by segments including China, Mexico and Central America.
E-commerce sales were up 26 per cent for the United States, Walmart said in its report. - AFP
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