Walmart raised its full-year sales forecast, and stuck to its earlier guidance on operating profit on August 21, after reporting that sales at its U.S. stores rose nearly 5% in its most recent quarter. CEO Doug McMillon said the figures show sales “momentum.” 

The New York Times says that a better-than-expected result for the largest retailer in the U.S. suggests shoppers squeezed by inflation and wary of economic uncertainty continue to flock to the Walmart for staples and other goods.

Foot traffic rose, and the amount shoppers spent per visit grew even faster in the quarter ending in July, the company said, while its e-commerce sales rose more than 25% compared to the same quarter in 2024.

The latest results cover a period during which U.S. tariffs on a broad range of imports hit all retailers. Many have been able to absorb the added expenses by front-loading inventories before the tariffs took effect, and reorganizing supply chains. But pressure to pass added costs on to consumer will rise as retailers deplete inventories, especially as the peak sales season at the end of the year approaches. Walmart previously warned that tariffs were likely to lead to higher prices for consumers, which drew criticism from President Trump, who called on social media for the retailer to “EAT THE TARIFFS.”

Read More: Tariffs Set to Turn Holiday Shopping Season into High-Stakes Gamble

The Times says other retailers that reported earnings this week discussed different approaches to dealing with tariffs. TJX, the parent company of TJ Maxx, Marshalls and HomeGoods, on August 20 said it expanded its inventory by 10% last quarter, suggesting that it can work through a stockpile of goods that it bought before the steepest tariffs took effect. Home Depot said on August 19 that tariffs may soon begin to impact its pricing strategy. 

Meanwhile, Target said August 20 that its sales and profit fell last quarter, and because of uncertainty related to tariffs, it did not buy back any of its shares. The company also named a new chief executive in an attempt to counter declining sales.