Walmart Boosts Sales Forecast Amid Escalating Tariff Costs
Walmart recently announced robust Q2 2025 results, reporting a revenue of $177.4 billion. In light of this, the retail behemoth has revised its full-year sales guidance to a growth of 3.75%-4.75%, a significant increase from the previously projected 3%-4%. Despite the escalating tariff costs instigated by President Trump’s trade policies, Walmart has managed to retain its competitive edge through strategic pricing and efficient inventory management.
CEO Doug McMillon conceded that the impact of tariff pressures has been “gradual enough that customer behavioral adjustments have been somewhat muted,” but cautioned that costs are on an upward trajectory each week. Remarkably, the company has managed to gain market share across all income groups, with a notable surge amongst higher-income households. Meanwhile, its rival, Target, continues to grapple with declining sales for the third consecutive quarter.
The strong performance of Walmart stands in stark contrast to Target. Target recently announced that CEO Brian Cornell will be stepping down early next year, after steering the company for over a decade. Target imports approximately half of its merchandise, compared to Walmart’s 33%, compelling it to raise prices at nearly double the rate to counterbalance the impacts of tariffs.
Source: CNBC