Walmart (WMT) has reported mixed financial results for the year’s first quarter and warned of looming impacts from U.S. President Donald Trump’s import tariffs.
The Arkansas-based company, which is the world’s largest retailer, announced earnings per share (EPS) of $0.61 U.S., which was ahead of the $0.58 U.S. forecast on Wall Street.
However, revenue in the period of $165.61 billion U.S. fell short of estimates of $165.84 billion U.S. Sales were up 2.5% from a year earlier.
Comparable sales, which are also known as same-store sales, rose 4.5% for Walmart’s U.S. division and 6.7% for its big box unit Sam’s Club during the quarter.
The company’s e-commerce sales increased 21% in the U.S., marking the 12th straight quarter of double-digit gains. Global e-commerce sales jumped 22% year-over-year in Q1.
In its earnings release, Walmart warned of coming impacts from tariffs.
However, management stuck with its previously announced full-year guidance that calls for sales to grow 3% to 4% and EPS of $2.50 U.S. to $2.60 U.S. a share.
In an interview with CNBC, Walmart Chief Financial Officer John David Rainey said tariffs are “too high,” adding that, “the magnitude of these increases is more than any retailer can absorb.”
Walmart said it expects net sales to increase 3.5% to 4.5% in the current second quarter but declined to provide guidance for earnings or operating income because of fluctuating tariff policies.
Walmart marked a milestone during the quarter, posting its first profitable quarter for its e-commerce business both in the U.S. and globally.
The company’s e-commerce business has benefitted from strong online advertising and the popularity of Walmart’s third-party digital marketplace.
The stock of Walmart has risen 8% this year to currently trade at $96.83 U.S. per share.