Walmart Inc (NYSE:WMT, ETR:WMT) shares moved lower as the company reported an earnings miss for the second quarter and said it is experiencing higher costs due to tariffs.
For the quarter, the grocery giant posted earnings per share (EPS) of $0.68, below estimates of $0.74.
Revenue of $177.4 billion, up 5% year-over-year, beat estimates of $176.2 billion.
Comparable US sales were up 4.3% to 4.6%, above the Street consensus of 4.1%.
Global eCommerce sales jumped 25%, attributed to strong demand for store-fulfilled pickup, delivery services, and marketplace offerings.
Despite the earnings miss, Walmart raised its full-year revenue guidance range to 3.75% to 4.75%, up from 3% to 4%, and adjusted EPS guidance to $2.52 to $2.62, up from its prior range of $2.50 to $2.60.
It maintained its adjusted operating income guidance at 3.5% to 5.5%.
“The top-line momentum we have in our business comes from how we’re innovating and executing,” Walmart CEO Doug McMillon said in a statement.
“Connecting with our customers and members through digital experiences is helping to drive our business, and the way we’re deploying AI will make these experiences even better.”
Meanwhile, Walmart CFO John David Rainey told CNBC the company is working to keep its prices low amid tariffs, in some cases fully absorbing the higher costs and in others passing the costs on to consumers. He added that tariff-impacted costs continue to drift higher.
Shares of Walmart fell to 4.5% to $98 on Thursday morning.