Walmart Keeps Sales Rolling Despite Tariff Pressure

While some big-name retailers are stumbling, Walmart is showing its muscle. The world’s largest retailer reported stronger-than-expected quarterly sales and even bumped up its full-year forecast — proof that shoppers, squeezed by inflation and nervous about the economy, are still piling into Walmart for groceries and essentials.

Sales at US stores open at least a year jumped nearly 5%, with foot traffic up 1.5% and shoppers spending more time (and money) per visit. Online orders soared more than 25% compared to last year, giving Walmart another edge over its rivals.

CEO Doug McMillon said tariffs are hitting the company’s costs “every week,” but so far Walmart has avoided major price hikes. Instead, middle- and lower-income households are adjusting by trading down to cheaper brands or cutting back on non-essentials. Wealthier customers, meanwhile, are actually shopping more at Walmart, drawn in by grocery deals and fast delivery options.

Still, it’s not all smooth sailing. Profits fell short of Wall Street expectations — Walmart’s first earnings miss in three years — thanks to higher insurance claims and other costs. Shares slid about 4% in early trading. Even so, executives say those expenses should ease in coming quarters.

Walmart is banking on a strong back-to-school and holiday season. The company rolled out more than 7,400 price rollbacks this quarter — 30% more on groceries alone — in a bid to keep wallets from tightening further.

The contrast with rivals is stark: Target just posted its third straight sales decline and announced its longtime CEO will step down. Home Depot and TJX, meanwhile, are bracing for tariffs to hit harder.

For Walmart, the formula remains simple: scale, groceries, and value. More than two-thirds of its US sales come from domestic goods, which helps blunt tariff pain. As McMillon put it:

“We’re keeping prices as low as we can for as long as we can.”

Analysts say Walmart’s resilience shows just how much value still matters in retail. The real test will come if tariffs push prices higher across the board. As one retail analyst put it:

“The million-dollar question is, do consumers manage through it — or do they start to pull back?”

With input from the New York Times, CNN, Axios, Bloomberg, and Reuters.