Sales at the group’s US stores open at least a year rose 6.4%
17 August 2023 - 16:33
byAishwarya Venugopal and Siddarth Shrikanth
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Bangaluru/New York — Walmart raised its full-year forecasts and beat estimates for second-quarter sales on Thursday, underscoring its strength in offering lower prices on everything from daily perishables and clothes to inflation-squeezed Americans.
The company's share price, which climbed 12.3% this year, was up about 3% in premarket trading.
Sales at Walmart’s US stores trading for at least a year rose 6.4%, excluding fuel, in the three months ended July 31, beating estimates of a 4.44% increase, according to Refinitiv data.
“Food is a strength, but we’re also encouraged by our results in general merchandise versus our expectations when we started the quarter,” Walmart CEO Doug McMillon said in a statement.
Walmart is also benefiting from lower supply chain costs and fewer discounts previously put in place to cut down excess inventory.
“We’re in good shape with inventory, and we like our position for the back half of the year,” said McMillon.
Smaller rival Target on Wednesday beat quarterly profit estimates, benefiting from leaner inventory.
Walmart said gross margin rate in the second quarter rose 50 basis points (bps), compared with an 18bps drop in the first quarter.
The retail giant expects fiscal 2024 earnings to be in the range of $6.36 to $6.46 per share versus the prior forecast of $6.10 to $6.20. Analysts were on average estimating $6.28 per share, according to Refinitiv IBES data.
The company forecasts net sales to rise about 4%-4.5%, compared with a rise of about 3.5% rise expected previously.
In contrast, Target cut its full-year forecasts.
Walmart’s operating income rose 6.7% to $7.32bn in the quarter, while it reported adjusted earnings per share of $1.84.
US e-commerce sales leapt 24%, compared with a 12% increase in the year-ago quarter and a 27% increase in the first quarter.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Walmart beats sales estimates
Sales at the group’s US stores open at least a year rose 6.4%
Bangaluru/New York — Walmart raised its full-year forecasts and beat estimates for second-quarter sales on Thursday, underscoring its strength in offering lower prices on everything from daily perishables and clothes to inflation-squeezed Americans.
The company's share price, which climbed 12.3% this year, was up about 3% in premarket trading.
Sales at Walmart’s US stores trading for at least a year rose 6.4%, excluding fuel, in the three months ended July 31, beating estimates of a 4.44% increase, according to Refinitiv data.
“Food is a strength, but we’re also encouraged by our results in general merchandise versus our expectations when we started the quarter,” Walmart CEO Doug McMillon said in a statement.
Walmart is also benefiting from lower supply chain costs and fewer discounts previously put in place to cut down excess inventory.
“We’re in good shape with inventory, and we like our position for the back half of the year,” said McMillon.
Smaller rival Target on Wednesday beat quarterly profit estimates, benefiting from leaner inventory.
Walmart said gross margin rate in the second quarter rose 50 basis points (bps), compared with an 18bps drop in the first quarter.
The retail giant expects fiscal 2024 earnings to be in the range of $6.36 to $6.46 per share versus the prior forecast of $6.10 to $6.20. Analysts were on average estimating $6.28 per share, according to Refinitiv IBES data.
The company forecasts net sales to rise about 4%-4.5%, compared with a rise of about 3.5% rise expected previously.
In contrast, Target cut its full-year forecasts.
Walmart’s operating income rose 6.7% to $7.32bn in the quarter, while it reported adjusted earnings per share of $1.84.
US e-commerce sales leapt 24%, compared with a 12% increase in the year-ago quarter and a 27% increase in the first quarter.
Reuters
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