Walmart Quarterly Earnings Report

SOURCE www.cnbc.com
Walmart falls short of quarterly sales estimates due to higher tariffs, but beats earnings expectations. The retailer sees growth in e-commerce business and plans to absorb some of the higher prices from tariffs to keep prices low for consumers.

Key Points

  • E-commerce sales increased by 21% in the U.S.
  • Net sales expected to increase 3.5% to 4.5% for the fiscal second quarter
  • CEO expects tariffs on China to create the greatest cost pressure

Pros

  • Beat quarterly earnings expectations
  • Posted first profitable quarter for e-commerce business
  • Plans to absorb some higher prices from tariffs to keep prices low for consumers

Cons

  • Fell just short of quarterly sales estimates
  • Shares fell more than 4% in morning trading