Walmart said Thursday that sales at its U.S. stores rose nearly 5 percent in its most recent quarter, a better-than-expected result that suggests shoppers squeezed by inflation and wary of economic uncertainty continue to flock to the retailer for staples and other goods.
As the largest retailer in the United States, Walmart is considered a bellwether for the state of the consumer. Recent results from rivals have been mixed, but Walmart’s earnings were relatively upbeat, showing sales “momentum,” according to Doug McMillon, the company’s chief executive.
Foot traffic rose and the amount shoppers spent per visit grew even faster in the quarter ending in July. The company’s e-commerce sales jumped more than 25 percent over the previous year.
As a result, Walmart raised its full-year sales forecast and affirmed its guidance for operating profit growth.
The company’s latest quarter covered a period during which U.S. tariffs on a broad range of imports hit retailers like Walmart with extra costs. Many businesses have been able to absorb the added expenses, by adding to inventories before the tariffs took effect and reorganizing supply chains. But as time goes on, companies are under pressure to pass the cost of tariffs onto consumers through higher prices.
Executives at Walmart have previously warned that tariffs were likely to lead to higher prices for consumers, which drew criticism from President Trump, who publicly called on the retailer to “EAT THE TARIFFS.”
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