TGT's Margin Versus WMT & DG Walmart Inc.'s (WMT) gross margin expansion appears increasingly supported by structural advantages, yet headwinds loom. Walmart continues leveraging disciplined inventory management and improved e-commerce economics to drive gross margin gains, with the U.S. gross margin up 25 basis points in the first quarter of fiscal 2026. Walmart's e-commerce profitability and mix shift toward high-margin advertising and membership are helping offset pressure from tariffs. However, elevated ...