A shopper pushes a cart through the parking lot of a Walmart in the morning in Wilmington, Delaware.
Walmart reported lower second-quarter profits on Thursday but still topped analyst expectations as new US drug price caps and investments in attracting inflation-strapped customers weighed on results, reports AFP. Profits were $6.4bn, down 9.4% from the year-ago quarter. US comparable sales, a closely watched benchmark, grew by 2.6% compared with 4.1 in the first quarter. Revenues in the quarter were $187.9bn, up 5.9% from the year-ago period as Walmart raised its full-year profit and sales forecast.
The results were lifted by US tariff refunds but Walmart said the boost was partially offset by price cuts. Walmart cited a negative effect on US sales from a price cap on 10 top-selling pharmaceutical products that went into effect January 1.
Operating income growth came in "at the top end of our expectations," Walmart said, adding that "our outlook reflects the continued prioritization of remaining tariff refunds into price investments." As with other recent quarters, Walmart said US results were lifted by market share gains across income categories but led by upper-income households.
