Walmart (WMT) posted stronger-than-expected first-quarter earnings Thursday and said full-year profit could top its forecasts, as the world's biggest retailer continues to benefit from value-focused shoppers hit by food-price inflation.
Adjusted earnings for the three months ended in April came in at 62 cents a share, up 26.5% from the same period last year and firmly ahead of the Wall Street consensus analyst forecast of 52 cents a share.
Group revenue, Walmart said, rose 6% to $161.5 billion , again topping analysts' estimates of a $159.5 billion tally.
U.S. same-store sales were up 3.8%, ahead of Wall Street's 3.2% forecast, while U.S. online sales also impressed, rising 22% from last year and now comprising a record 20% of all domestic revenues.
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Looking into the current financial year, Walmart sees earnings at the higher end of, or slightly above, its prior forecast of $2.23 to $2.37 a share, with net sales rising between 3% and 4%.
"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 McMillon.
"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.”
Walmart shares were marked 5.95% higher in early Thursday trading immediately following the earnings release to change hands at $63.43 each, a move that extends the stock's year-to-date advance to around 20%.
Related: Top analyst updates S&P 500 price target after April inflation surprise
Earlier this week, Home Depot (HD) posted a big drop in same-store sales, as well as in big-ticket transactions. The home-improvement retailer cited "softer engagements in larger discretionary projects," linked partly to higher inflation.
The group posted modestly better-than-expected profit of $3.63 per share on revenue of $36.42 billion.
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