On Thursday, Walmart Inc. released its second-quarter earnings, inching past analysts’ forecasts and raising its sales and profit outlook on consumer strength.
On August 15, its stock price increased by 6.58% to $73.18 apiece. However, it is expected to drop by -0.48% to $72.83 per share in the after-hours session.
The retailer giant’s earnings per share jumped to $0.67, beating experts’ $0.64 forecast and the previous $0.60 data.
Moreover, Walmart reported revenue of $169.30 billion, better than the $168.52 billion estimates. It also surpassed $161.50 billion in the first quarter.
LSEG’s data showed that the US store’s comparable sales, combining online and store sales, rose by 4.20%. This was above the 3.30% forecast from analysts.
Its annual sales and profit guidance were also boosted for the second time this year. This came after the company witnessed strength in consumer data despite inflation pressure.
The robust demand for fresh food, mainly produce and high-quality meats supported sales profits. Additionally, shoppers spent more on personal care and beauty products.
Furthermore, American shoppers turn to its stores for cheaper essentials, which pulled up its shares by 8.00% to a record high.
Despite several years of higher-than-average inflation, Walmart’s earnings hint that consumer spending remains resilient. Inflation also displayed signs of moderation.
According to its CFO, John David Rainey, there has been no further strain on consumer health in the company’s business.
E-commerce Sales of Walmart Surged
According to Walmart CEO Doug McMillon, e-commerce losses eased in the quarter, and the retail giant will eventually earn money in the sector.
Global e-commerce sales went up by 21.00%, and the store’s US business segment rose by 22.00%. The company’s CFO addressed the strong traffic and unit growth across stores and digital’s contribution to stronger sales.
Also, Walmart forecasts Q3 net sales will inch up by 3.25% to 4.25%. The company’s full-year net sales are expected to increase to 4.75%, higher than the prior 3.00% to 4.00% outlook.
