International
Walmart lifts outlook on strong earnings but hit by opioid settlement
| By AFP | Juliette Michel with Beiyi Seow in Washington |
US retailer Walmart saw its earnings top expectations in the third quarter as consumers looked for bargains amid surging inflation, but its numbers were bogged down after a settlement announced Tuesday relating to opioid cases.
The big-box retailer said it “continued to gain market share” in the grocery segment, raising its full-year outlook on strong results despite a challenging environment this year.
Total revenue came in better than expected at $152.8 billion, up 8.7 percent from a year ago.
Walmart also expects that its full-year adjusted profit will decline between 6.5 percent and 7.5 percent — an improvement from earlier estimates.
But its numbers were bogged down by a settlement resolving allegations that it contributed to the opioid crisis by failing to regulate prescriptions at stores.
The deal is set to provide $3.1 billion to communities nationwide and “require significant improvements in how Walmart’s pharmacies handle opioids,” according to a statement by New York Attorney General Letitia James’s office.
This came as the opioid crisis in the United States — causing more than 500,000 deaths over 20 years — triggered a flurry of lawsuits against drugmakers, distributors and pharmacies.
US pharmacy chains CVS Health and Walgreens similarly announced preliminary agreements this month to pay a total of more than $10 billion to resolve opioid claims.
“Pharmacies such as Walmart played an undeniable role” in perpetuating the harm caused by opioids, said James, adding that the settlement is being sent to other states for review and approval.
In a separate statement, Walmart said it “strongly disputes” the allegations but believes the settlement will help communities in the fight against the crisis.
Gains in grocery
“With the cost of everyday items still stubbornly high in too many categories, more customers and members are choosing us for the value and assortment we’re known for,” Walmart Chief Executive Doug McMillon told an earnings call.
Customers are shopping with Walmart more often as well, including wealthier consumers, he said.
“Walmart US continued to gain market share in grocery, helped by unit growth in our food business,” McMillon said in a statement, adding that the company has improved its inventory position.
“When consumer finances get tough, Walmart gets going. That is the central message from today’s strong set of numbers,” said GlobalData managing director Neil Saunders in an analysis.
He noted that most of the company’s expansion is occurring in grocery where shoppers are feeling the pinch.
Although some of this is down to inflation, “there has also been volume growth which reflects the increase in customer numbers.”
With US inflation hovering near a decades-high level, consumers have been spending more on staples and pulling back on discretionary items, forcing Walmart to cut its profit outlook in July.
The company also announced in recent months that it would hire 40,000 workers for the upcoming holiday season, significantly lower than before.
Investors have been eyeing Walmart’s results as a proxy for demand, and Wall Street stocks climbed in morning trading on signs of resilience among consumers.
International
FBI Says It Disrupted Alleged Plot Targeting White House During UFC Event
The Federal Bureau of Investigation (FBI) announced Tuesday that it had disrupted an alleged plot to attack the White House during a major Ultimate Fighting Championship (UFC) event held in Washington over the weekend.
FBI Director Kash Patel said the threat was identified on June 10 through a joint investigation involving multiple law enforcement agencies. According to Patel, swift action by authorities led to the arrest of several suspects before the alleged plan could be carried out.
“On June 10, the FBI and our law enforcement partners became aware of a potential threat targeting UFC America 250 in Washington. Thanks to the rapid response of the FBI and our partners, multiple individuals are now in custody, and the alleged attack plans were stopped before they could be executed,” Patel said.
He emphasized that the operation demonstrated the ability of security agencies to detect and prevent potential threats at large public gatherings. Patel added that the investigation remains ongoing and that additional details will be released as court proceedings move forward.
According to reports from U.S. media outlets, five individuals have been arrested so far. The suspects were identified as Tycen Proper of Ohio, Daniel Eskridge of Missouri, Abraham Hermosillo Álvarez of Nebraska, and Bryan Omar Roa and Michael Alan Thomas, both from California. Authorities are also investigating the possible involvement of 18 additional individuals.
Investigators allege that the plot involved the use of drones equipped with explosives to target buildings near the sporting event. The plan reportedly sought to trigger a mass evacuation and direct attendees toward areas where snipers were allegedly positioned. Authorities further claim that a second phase of the operation included an attempted assault on the White House.
The U.S. Secret Service confirmed that it worked closely with the FBI throughout the operation. Secret Service Director Sean Curran stated that security teams conducted extensive efforts to identify those involved and eliminate any threat to attendees and protected facilities.
The investigation reportedly uncovered communications conducted through the messaging application Signal, where several suspects allegedly discussed details related to the planned attack. A forensic analysis of one of the seized mobile phones revealed at least 23 users participating in conversations connected to the alleged planning activities.
Court documents also indicate that some of the suspects allegedly intended to target U.S. political figures. Among the reported targets were members of Congress who had received contributions from the American Israel Public Affairs Committee (AIPAC). Investigators further stated that one of the primary suspects had posted antisemitic messages and expressions of support for Adolf Hitler on social media, evidence that is now part of the ongoing judicial investigation.
International
Brazil helicopter crash in Rio de Janeiro kills six, including pilots and international figures
The Rio de Janeiro Civil Police confirmed on Monday the identities of three of the six victims killed in a helicopter collision that occurred the previous morning in the Recreio dos Bandeirantes neighborhood.
All three identified victims are Brazilian nationals: the pilots of the aircraft, Charles Marsillac and Alexandre Souza, and music producer Lucas Brito.
The identities of the three foreign victims have not yet been officially confirmed. They include U.S. singer Oliver Tree, Argentine YouTuber Gaspar Prim—known online as “Gaspi”—and Argentine producer Lucas Vignale, all of whom were listed on the flight manifest.
According to police, forensic experts from the Legal Medical Institute have already collected DNA samples in order to identify the foreign victims, whose bodies were severely burned.
One of the helicopters crashed into a private parking lot, triggering a fire that destroyed around twenty electric vehicles. That aircraft was carrying the pilot and four passengers, including the three foreign nationals.
The second helicopter, which had only the pilot on board, crashed approximately 100 meters away from the first impact site.
Rio de Janeiro’s deputy mayor, Eduardo Cavaliere, stated that both helicopters were operating transport flights toward Angra dos Reis on the Rio coastline and toward the mountainous region of the state.
Oliver Tree, 32, was in Brazil as part of an international tour. The artist, known for songs such as “Life Goes On” and “Miss You,” had performed to a large audience in São Paulo a week earlier and was scheduled to continue his tour in Europe.
Argentine content creator Gaspar Prim, 23, had built a following of more than two million on social media platforms, gaining popularity for humorous and often controversial video productions that had occasionally been removed by hosting platforms.
International
Mexico and U.S. Launch New Bilateral Security Group to Combat Fentanyl and Organized Crime
The governments of Mexico and the United States officially launched the Bilateral Implementation Group (BIG) on Friday, a new initiative aimed at strengthening cooperation on security issues and enhancing joint efforts against transnational crime.
In a statement, U.S. Ambassador to Mexico Ronald Johnson announced that he and Deputy Foreign Minister Roberto Velasco addressed officials from both countries who will lead what he described as a “new phase of bilateral cooperation.” The initiative seeks to curb the flow of fentanyl and other illicit drugs, illegal firearms, and human trafficking across the shared border.
Earlier this week, Mexico’s Ministry of Foreign Affairs had confirmed that senior security officials from both nations would meet in Mexico City on June 12 to review and advance existing cooperation agreements.
Through social media, Ambassador Johnson explained that the new bilateral group is designed to improve coordination between the two governments by placing greater emphasis on implementation, accountability, and measurable results. The effort will also focus on combating transnational criminal organizations operating across North America.
“The participation of 15 U.S. government agencies, working alongside their Mexican counterparts, reflects the seriousness of this effort and our shared commitment to delivering measurable results,” Johnson said.
The ambassador also highlighted several achievements that he attributed to ongoing bilateral cooperation. According to Johnson, maritime drug trafficking into the United States has declined by more than 95 percent, while overdose deaths have fallen by 35 percent.
He further noted that Mexican authorities have seized more than 400 metric tons of illegal drugs and dismantled over 2,300 clandestine laboratories as part of their efforts to combat organized crime and narcotics production.
The launch of the Bilateral Implementation Group marks the latest step in the security partnership between Mexico and the United States, as both countries seek to address shared challenges related to drug trafficking, arms smuggling, human trafficking, and the activities of criminal networks operating across the region.
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