Walmart reports solid profits behind rise in US sales

Walmart reports solid profits behind rise in US sales

The retail giant scores a 4.5% rise in Q1 comparable sales, on the back of another robust performance in grocery.

Walmart’s shares rose 1.8% in pre-market trading. (Walmart pic)
NEW YORK:
Walmart reported solid profits today boosted once again by a strong performance in its US division as it manages tariff effects following trade actions by President Donald Trump.

Profits came in at US$4.5 billion, down 12.1% from the year-ago level, but topping analyst expectations. Revenues rose 2.5% to US$165.6 billion.

The retail giant scored a 4.5% rise in first quarter (Q1) comparable sales behind another robust performance in grocery.

While maintaining its full-year projections, the company did not offer a range on its second-quarter (Q2) profit outlook, citing uncertainty around US trade policy.

On Monday, the US and China announced a de-escalation of their trade war, but tariffs remain elevated on China and other countries following numerous announcements by Trump.

“Given the dynamic nature of the backdrop, and the range of near-term outcomes being exceedingly wide and difficult to predict, we felt it best to hold from providing a specific range of guidance for Q2 operating income growth and earnings per share,” CFO John David Rainey said in a presentation.

Shares rose 1.8% in pre-market trading.

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