NEW YORK — NEW YORK (AP) — Walmart Inc. reported increases in second-quarter profits and sales Thursday as it pulls in shoppers seeking low prices for groceries and other essentials to offset worries that new U.S. tariffs may make a variety of goods more expensive.
The nation’s largest retailer also increased its annual profit and sales outlook. Quarterly results from Walmart and other major U.S. retailers this week offer clues on how consumers are reacting to the possibility of tariff-related price increases.
The company, based in Bentonville, Arkansas, said it earned $7.03 billion, or 88 cents per share, for the three-month period that ended ended July 31. That compares with $4.50 billion, or 56 cents per share, a year ago.
Sales rose nearly 5% to $177.4 billion.
A growing list of companies, including Procter & Gamble, E.lf. Cosmetics, Black & Decker and Ralph Lauren, told investors in recent weeks that they planned to or already had raised prices because of tariffs, though modestly.
None of that has derailed consumer spending. Shoppers spent at a healthy pace in July, particularly at the nation’s auto dealerships, as signs emerged that President Donald Trump’s trade policies were taking a toll on jobs.
Some of that spending may have been shoppers buying furniture and other imported items to get ahead of expected price increases, analysts said.
On Tuesday, Home Depot, the nation’s largest home improvement retailer, reported improved sales during its latest quarter as consumers remained focused on smaller projects. Like Walmart, Home Depot’s performance missed Wall Street’s expectations.
The Atlanta-based company also said shoppers should expect modest price increases in some categories as a result of additional costs from tariffs, which are taxes on imports.
Target, which has been struggling to reverse a persistent sales malaise, reported another quartely decline in comparable sales and said We