Introduction to Walmart’s Quarterly Earnings

People shop at a Walmart in Rosemead, California, on April 11, 2025.
Walmart will report its quarterly earnings before the bell on Thursday, as investors and economists gauge the strength of the U.S. consumer and the impact of higher tariffs on the retail industry.

Expected Earnings

Here’s what Wall Street is expecting for the fiscal first quarter:

• Earnings per share: 58 cents
• Revenue: $165.88 billion

Walmart’s Advantages

Walmart has advantages that could help it weather an uncertain economy. As the nation’s largest grocer, it sells food and necessities that drive steadier store and website traffic.
And as a well-known value player, it can use lower prices to attract even middle- and upper-income customers who want to pay less. Already, Walmart has attracted wealthier shoppers with faster deliveries, store remodels and a wider assortment of brands.
Plus, the discounter has boosted profits by looking beyond retail and grown newer businesses, including advertising, delivery and its subscription-based membership program Walmart+.

Sales Outlook and Tariffs

At an investor day last month, Walmart stuck by its first-quarter sales outlook of 3% to 4% growth. Yet it widened the operating income guidance and did not provide a new range, citing uncertainty about the impact of tariffs on profits.
At the time, Chief Financial Officer John David Rainey said the big-box retailer had seen "a little more sales volatility week to week and frankly, day to day." He said the company expected April to be its strongest month of the quarter because of the Easter holiday.
About a third of what Walmart sells in the U.S. comes from other parts of the world, with China and Mexico as the "most significant" countries for imports, Rainey said in April.

Impact of Tariff Changes

Since Walmart’s investor day remarks, the Trump administration has increased tariffs on goods from China and then later announced it would slash those rates for 90 days. On Monday, President Donald Trump announced the agreement with China to temporarily reduce duties to 30%, down from 145%. Beijing said it will lower tariffs on U.S. goods to 10% from 125%.
Simeon Gutman, retail analyst at Morgan Stanley, said he expects Walmart and other retailers to capitalize on the 90-day pause by importing what they need for the crucial back-to-school and holiday seasons.

Walmart’s Position

As a retail giant and low-cost operator, Walmart is in "an enviable position," he said. The company’s scale allows for more efficient operations, more leverage in negotiations with vendors and the ability to keep prices low — even at a time when consumers are selective about spending and tariff levels rise and fall.
"Anytime these shocks occur to the system, how can they not be the best off?" Gutman said.
But, he added, "at a moment that the consumer is more tentative, it’s critical for this business to show they’re still taking share."

Stock Performance

As of Wednesday’s close, Walmart shares are up about 7% so far this year. That outpaces the roughly flat performance of the S&P 500 during the same time period. Shares of Walmart closed at $96.83 on Wednesday, bringing the company’s market value to about $775 billion.

Conclusion

Walmart’s quarterly earnings report will provide insight into the company’s ability to navigate an uncertain economy and the impact of higher tariffs on the retail industry. With its advantages as a value player and its growth in newer businesses, Walmart is well-positioned to weather the challenges ahead.

FAQs

Q: What is Walmart’s expected earnings per share for the fiscal first quarter?
A: 58 cents
Q: What is Walmart’s expected revenue for the fiscal first quarter?
A: $165.88 billion
Q: How has Walmart performed in the stock market so far this year?
A: Walmart shares are up about 7% so far this year, outpacing the S&P 500.
Q: What is the impact of tariffs on Walmart’s business?
A: Tariffs have created uncertainty for Walmart, but the company is well-positioned to navigate the challenges with its scale and efficient operations.
Q: What is Walmart’s sales outlook for the first quarter?
A: Walmart expects 3% to 4% growth in sales for the first quarter.

Netflix said Wednesday its cheaper, ad-supported tier now has 94 million monthly active users — an increase of more than 20 million since its last public tally in November. The company and its peers have been increasingly leaning on advertising to boost the profitability of their streaming products. Netflix first introduced the ad-supported plan in November 2022.

Pricing and Comparison

Netflix’s ad-supported plan costs $7.99 per month, a steep discount from its least expensive ad-free plan, at $17.99 per month. This significant price difference has likely contributed to the rapid growth of the ad-supported tier’s user base.

Advertising Effectiveness

“When you compare us to our competitors, attention starts higher and ends much higher,” Netflix President of Advertising Amy Reinhard said in a statement. “Even more impressive, members pay as much attention to mid-roll ads as they do to the shows and movies themselves.” This suggests that the ad-supported model is not only attracting more users but also providing effective advertising opportunities for companies.

Demographic Reach

Netflix also said its cheapest tier reaches more 18- to 34-year-olds than any U.S. broadcast or cable network. This demographic is particularly valuable for advertisers, as it represents a large and active consumer group.

Conclusion

The growth of Netflix’s ad-supported tier demonstrates the potential for streaming services to generate revenue through advertising. With its large user base and effective ad model, Netflix is well-positioned to continue benefiting from this trend. As the streaming market evolves, it will be important to watch how Netflix and its competitors adapt and innovate their advertising strategies.

FAQs

Q: How many monthly active users does Netflix’s ad-supported tier have?

A: Netflix’s ad-supported tier has 94 million monthly active users.

Q: How much does Netflix’s ad-supported plan cost?

A: Netflix’s ad-supported plan costs $7.99 per month.

Q: What demographic does Netflix’s cheapest tier reach the most?

A: Netflix’s cheapest tier reaches more 18- to 34-year-olds than any U.S. broadcast or cable network.

Q: When did Netflix introduce its ad-supported plan?

A: Netflix first introduced the ad-supported plan in November 2022.

A customer enters an American Eagle store in Miami, Florida on April 4, 2025. American Eagle on Tuesday said it is writing off $75 million in spring and summer merchandise and withdrawing its full-year guidance as it contends with slow sales, steep discounting and an uncertain economy.

First Quarter Expectations and Sales Performance

The apparel retailer said it expects revenue in the first quarter, which ended in early May, to be around $1.1 billion, a decline of about 5% compared to the prior-year period. American Eagle anticipates comparable sales will drop 3%, led by an expected 4% decline at intimates brand Aerie. American Eagle previously expected first-quarter sales to be down by a mid-single-digit percentage and anticipated full-year sales would drop by a low single-digit percentage.

Impact on Shares and Financial Loss

Shares plunged more than 17% in extended trading. When it reported fiscal fourth-quarter results in March, American Eagle warned that the first quarter was off to a “slower than expected” start, due to weak demand and cold weather. Conditions evidently worsened as the quarter progressed, and the retailer turned to steep discounts to move inventory.

Operating Loss and Restructuring

As a result, American Eagle is expecting to see an operating loss of around $85 million and an adjusted operating loss, which cuts out one-time charges related to its restructuring, of about $68 million for the quarter. That loss reflects “higher than planned” discounting and a $75 million inventory charge related to a write-down of spring and summer merchandise, the company said.

CEO Statement and Future Plans

“We are clearly disappointed with our execution in the first quarter. Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory. As a result, we have taken an inventory write down on spring and summer goods,” said CEO Jay Schottenstein. “We have entered the second quarter in a better position, with inventory more aligned to sales trends,” he said. “Additionally, we are actively evaluating our forward plans. Our teams continue to work with urgency to strengthen product performance, while improving our buying principles.”

Withdrawal of Fiscal Guidance

The company added it is withdrawing its fiscal 2025 guidance “due to macro uncertainty and as management reviews forward plans in the context of first quarter results.” It is unclear if recent tariff policy changes had an effect on American Eagle. Some companies bought inventory earlier than usual to plan for higher duties, but American Eagle repeatedly said in March that it was in a solid inventory position and was able to go after trends as customer preferences shifted.

Conclusion

American Eagle’s financial struggles in the first quarter have led to a significant write-off of inventory and a withdrawal of its full-year guidance. The company’s CEO has expressed disappointment with the execution in the first quarter and has announced plans to strengthen product performance and improve buying principles. The future of American Eagle remains uncertain, and the company will need to work hard to regain its footing in the competitive apparel market.

FAQs

Q: What is the expected revenue for American Eagle in the first quarter?
A: The expected revenue for American Eagle in the first quarter is around $1.1 billion, a decline of about 5% compared to the prior-year period.
Q: What is the reason for the operating loss in the first quarter?
A: The operating loss in the first quarter is due to “higher than planned” discounting and a $75 million inventory charge related to a write-down of spring and summer merchandise.
Q: Is American Eagle withdrawing its fiscal 2025 guidance?
A: Yes, American Eagle is withdrawing its fiscal 2025 guidance due to macro uncertainty and as management reviews forward plans in the context of first quarter results.
Q: What is the impact of recent tariff policy changes on American Eagle?
A: It is unclear if recent tariff policy changes had an effect on American Eagle, as the company had previously stated that it was in a solid inventory position and was able to go after trends as customer preferences shifted.