Walmart posted stronger-than-expected second quarter earnings, while raising its full-year profit forecast, as the world’s biggest retailer continues to attract higher-end customers with its value-based offerings and e-commerce expansion.
Walmart (WMT) said adjusted earnings for the three months ending in July came in at 67 cents a share, up 9.8% from the same period last year and just ahead of the Wall Street consensus analyst forecast of 65 cents a share.
Group revenues, Walmart said, rose 4.8% to $169.34 billion, again topping analysts’ estimates of a $168.54 billion tally.
U.S. same store sales were up 4.2%, ahead of Wall Street’s 3.3% forecast, while U.S. online sales also impressed, rising 22% from last year and now comprising a record 20% of all domestic revenues.
Looking into the current financial year, Walmart sees earnings in the region of $2.35 to $2.43 per share, up from its prior forecast of between $2.23 to $2.37 a share, with net sales rising between 3.75% and 4.75%.
Walmart’s “Everyday low prices” ethos is luring higher-income customers and boosting its top and bottom line.
Image source: Joe Raedle/Getty Images
“Our team delivered a great quarter. Around the world our goal is simple – we’re focused on saving our customers both money and time,” said CEO Doug McMilion.
“It’s inspiring to see how our associates are simultaneously executing the fundamentals and innovating to make shopping with us more enjoyable and convenient,” he added. “We’re people-led and tech-powered, and that combination is propelling our business.”
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Walmart shares were marked 7.15% higher in premarket trading immediately following the earnings release to indicate an opening bell price of $73.57 each, a move that extends the stock’s year-to-date advance to around 40%.
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