<div id="readability-page-1"><div> By James Rogers and Tomi Kilgore 'We're keeping our prices as low as we can for as long as we can,' Walmart CEO Doug McMillon said in regard to the impact of tariffs Retail giant Walmart reported second-quarter results before market open Thursday. Shares of Walmart Inc. dropped in early trading Thursday after the discount-retail behemoth missed fiscal second-quarter profit expectations but raised its full-year outlook and saw strength in sales at its retail as well as its Sam's Club warehouse stores. As anticipated, tariffs loomed large over Walmart's second-quarter results. Last quarter, the company said that Americans should brace for higher prices as a result of tariffs, prompting an irate response from President Donald Trump. Treasury Secretary Scott Bessent subsequently said that he had spoken to Walmart Chief Executive Doug McMillon and that Walmart would absorb &#34;some&#34; of the tariff impact. Speaking during a conference call Thursday, McMillon said that the company is working to avoid additional pricing pressure on customers. &#34;With regard to our U.S. pricing decisions, given tariff-related cost pressures, we're doing what we said we would do,&#34; McMillon said, according to a FactSet transcript. &#34;We're keeping our prices as low as we can for as long as we can.&#34; McMillon said the impact of tariffs has been gradual enough that any behavioral adjustments by the customer have been somewhat muted, but that could change in the coming months. &#34;As we replenish inventory at post-tariff price levels, we've continued to see our costs increase each week, which we expect will continue into the third and fourth quarters,&#34; he said. Walmart is seeing more changes in spending behavior among customers from middle- and lower-income households than it has among customers from higher-income households on discretionary categories where item prices have gone up, according to McMillon. &#34;We see a corresponding moderation in units at the item level as customers switch to other items, or in some cases categories,&#34; he said. The company has approximately 7,400 price rollbacks, or reductions, across its assortment, which is about 2,000 more than last quarter. For the quarter to July 31, Walmart's adjusted earnings per share, which excludes nonrecurring items, rose to 68 cents from 67 cents in the same period a year ago, to miss the average analyst EPS estimate compiled by FactSet of 73 cents. That snaps a 12-quarter streak of bottom-line beats. The stock fell 3.2% in premarket trading, enough to lead the S&amp;P 500 index's SPX decliners ahead of the open. Revenue grew 4.8% from a year ago to $177.4 billion, beating the FactSet consensus of $175.94 billion, as Walmart's U.S. sales rose 4.8% to $120.9 billion. The Bentonville, Ark.-based company said that the strong U.S. sales growth reflects share gains across key categories and income brackets, led by upper-income households. Sam's Club's U.S. sales were up 3.4% to $23.6 billion. Walmart International sales rose 5.5% to $31.2 billion, fueled by China, Walmex in Mexico and Flipkart in India. U.S. comparable sales, or sales in stores open at least a year, were up 4.6% for Walmart, to top the FactSet consensus of 4.0% growth, and rose 5.9% for Sam's Club, to top expectations of a 5.2% rise. In a note, Jefferies analyst Corey Tarlowe highlighted Walmart's strong U.S. comparable sales and share gains, which he said &#34;underscore durable momentum.&#34; &#34;While tariffs introduce some near-term uncertainty, the focus on value and market share supports a favorable setup for sustained outperformance,&#34; he said. Walmart's gross profit rate improved to 24.5% from 24.4%. This is a key metric for Walmart in the current political environment, given the company's previous comments that it couldn't absorb the full impact of tariffs and would need to raise prices given narrow retail margins. Earlier this week, Home Depot Inc. (HD) said that tariffs would lead to some price increases on certain products but that they wouldn't be wide-ranging. For the full fiscal year, Walmart lifted its guidance for adjusted EPS to a range of $2.52 to $2.62 from a range of $2.50 to $2.60 and for net sales growth to a range of 3.75% to 4.75% from a range of 3% to 4%. On Wednesday, rival Target Corp. (TGT) reported second-quarter results that beat Wall Street's profit and sales expectations amid what the company described as a meaningful improvement in store traffic. Walmart shares are up 13.5% in 2025 through Wednesday, outpacing the S&amp;P 500's gain of 8.7%. -James Rogers -Tomi Kilgore This content was created by MarketWatch, which is operated by Dow Jones &amp; Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. <pre></pre> (END) Dow Jones Newswires 08-21-25 0920ETCopyright (c) 2025 Dow Jones &amp; Company, Inc.</div></div>

Walmart CEO Doug McMillon stated that tariffs are impacting costs, but the company is striving to keep prices low for customers. Despite missing second-quarter profit expectations, Walmart raised its full-year outlook, reporting a 4.8% revenue increase to $177.4 billion. U.S. comparable sales rose 4.6%, exceeding expectations. The company is experiencing changes in spending behavior among lower-income customers due to rising prices. Walmart's adjusted EPS was 68 cents, below the expected 73 cents. The stock fell 3.2% in premarket trading, but shares are up 13.5% in 2025.

- Walmart reported second-quarter results, missing profit expectations but raising its full-year outlook amid tariff impacts.  
- CEO Doug McMillon stated the company is working to keep prices low despite rising costs, with U.S. sales growing 4.8% to $120.9 billion.  
- Walmart's adjusted earnings per share rose to 68 cents, below analyst estimates, while the company lifted its guidance for the fiscal year.

Walmart says tariffs are raising costs, but it's trying to avoid price increases - for now