Walmart posted stronger-than-expected second-quarter earnings while raising its full-year profit forecast. 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. U.S. online sales also impressed, rising 24% from last year and now representing more than a fifth of overall revenues.
"This is no longer your mother’s Walmart; The customer base is expanding from primarily the low-income cohort to higher-end consumers who are seeking value," said Nancy Tengler, CIO and chief executive at Laffer Tengler Investments.
"This is what an excellent management team looks like vision, early adoption, and savvy execution," she added.
Looking into the current financial year, Walmart sees earnings between $2.35 to $2.43 per share, up from its prior forecast of $2.23 to $2.37. Net sales will rise between 3.75% and 4.75%.
Image source: Joe Raedle/Getty Images
Walmart CEO weighs in on encouraging trend
"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.
We released results for Q2 FY25. It was another strong quarter. Each part of our business grew – store and club sales are up, eCommerce has been compounding and pickup & delivery speeds have improved, reinforcing the resilience of our business model. https://t.co/vpvaYmrcAP $WMT pic.twitter.com/AdUniN8Qba
— Walmart Inc. (@WalmartInc) August 15, 2024
"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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The retailer's shares surged 6.5% at 10:30 a.m. EDT to $73.10, extending the stock's year-to-date advance to around 42% and putting Walmart's stock price at all-time highs.
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