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2026-02-19 21:17:12
[Walmart's Latest Earnings Report: Groceries and E-commerce Drive Growth, But Consumer Spending Becomes Cautious] ⑴ Walmart released its quarterly earnings report ending January 31 on Thursday, showing a 4.6% year-over-year increase in U.S. same-store sales and a 27% surge in online sales. The company continues to attract consumers across income levels, particularly high-income households, gaining more market share in grocery and fast online delivery. ⑵ New CEO John Furner has had a solid start. The company's stock price broke the $1 trillion market capitalization mark for the first time earlier this month. The advertising business, though still small, is growing rapidly and is highly profitable, becoming a new growth engine. ⑶ However, consumer spending is becoming more cautious, especially among low-income groups. Executives noted that the spending gap between high- and low-income households is widening slightly. Reductions in federal food assistance benefits have also dampened consumption among low-income groups. The earnings report shows that total merchandise sales growth has slowed, reflecting consumers prioritizing spending on necessities. ⑷ Regarding inflation, grocery prices rose less than 1% in the quarter, while general merchandise prices rose 3.2%, partly due to rising tariff costs. Walmart expects similar price trends in the current quarter. The company forecasts net sales growth of 3.5% to 4.5% for the current fiscal year, below some analysts' expectations. Quarterly net sales were $190.7 billion, slightly exceeding expectations, but net income fell 19.4% to $4.2 billion, dragged down by losses on equity investments.
