In Q1 of fiscal year 2026, Walmart reported a 50% growth in its global ad business and a 22% increase in global e-commerce sales. CEO Doug McMillon highlighted tariffs as a major concern impacting retail prices. He noted that Walmart is better positioned than competitors to manage these cost pressures. However, despite the challenges, Walmart's U.S. e-commerce became profitable for the first time, bolstered by new higher-margin offerings like advertising and memberships, marking a significant shift in Walmart's business strategy.
"The immediate challenge is obviously navigating the impact of tariffs here in the U.S.," Doug McMillon, chief executive officer at Walmart, told investors during the earnings call.
"It's helpful that we're crossing the threshold of profitability with ecommerce globally, and that we have these newer, higher margin businesses growing like membership and advertising," McMillon explained.
"We're positioned to manage the cost pressure from tariffs as well or better than anyone," McMillon said. "But even at the reduced levels, the higher tariffs will result in higher prices."
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