Walmart’s latest earnings report revealed U.S. comparable sales rose 4.6% in the most recent quarter, outpacing major competitors including Target and Home Depot. The gains came despite tariff-driven cost pressures that forced the retailer to raise prices on about 10% of imported goods.
The company said it absorbed the majority of tariff-related increases, helping it maintain a value edge for price-conscious consumers. Its grocery segment, which anchors Walmart’s business, continued to drive growth as shoppers prioritized essentials.
However, higher operating costs weighed on profits. Walmart took a $450 million charge tied to workplace injury claims, contributing to weaker-than-expected earnings. Even so, the retailer’s sales momentum highlights its resilience during a turbulent economic period.
Analysts see Walmart’s ability to grow while absorbing costs as a key differentiator. By leveraging its scale, efficient supply chain, and digital services, Walmart continues to capture consumers who are trading down from higher-priced retailers.
