The company topped Wall Street sales estimates for the quarter, but missed on Walmart earnings, marking the first time it has missed on quarterly earnings since May 2022. The retailer said a combination of one-time expenses, including restructuring charges, higher insurance claims and litigation settlements were among items squeezing profits.

The retailer now expects net Walmart sales growth 3.75% to 4.75% for the quarter, over from a previous range of 3% to 4%. Walmart also nudged up its acclimated earnings per share guidance, raising the range to$ 2.52 to$ 2.62 per share, over from the former outlook of$ 2.50 to$ 2.60 per share.

In an interview with CNBC, Chief Financial Officer John David Rainey stressed the retailer’s commitment to keeping prices low. He said Walmart has taken a variety of measures to do so, including expediting the flow of goods into the country from retail market 2025 and offering more Rollbacks, the company’s limited-time in-store discounts.

“We look at this on a store- by- store, a case- by- case, a order- by- order base, ” Rainey said. “There are certainly areas where we have fully absorbed higher Walmart tariff costs. In other areas, some of the costs have had to be passed on.” He added that expenses tied to tariffs are still trending up.

Rainey also said despite the costs, overall customer spending has held up. Walmart’s sales of private-label products, which typically are less expensive than national brands, were relatively flat compared to last year.

“Everyone is watching for signs of change in consumer behavior, but it has been very consistent,” he added. “Shoppers continue to show resilience.”

On the company’s earnings call, Chief Executive Officer Doug McMillon said middle- and lower-income households have been particularly sensitive to tariff-induced price increases on discretionary items. “There’s some temperance in point- position demand as shoppers transition to different products or orders, ” McMillon said.