Sales rose more than 8% in the second quarter and maintained guidance for the second half, Walmart said Tuesday, but saw some consumers turn to discount stores for essential consumer items.
The company’s stock was up 4% in pre-conference electronic trading after the results were announced.
The retail giant’s results beat analysts’ estimates but echoed a profit-slashing warning the company issued last month, when Walmart said inflation-wounded consumers were cutting back on luxury purchases and direct their spending towards the essentials.
Purchases from its physical stores in the US are expected, according to its forecasts, to increase by 3% in the second half (excluding fuel), ie by 4% for the whole year.
Adjusted earnings per share for the full year are expected to fall 9% to 11%, compared to the 11% to 13% decline the company forecast three weeks ago.
Adjusted earnings per share for the quarter came in at $1.77, versus estimates of $1.62, while revenue came in at $152.86 billion, versus expectations for $150.81 billion.
Net income for the quarter came to $5.15 billion, or $1.88 per share, compared with $4.28 billion, or $1.52 per share, in the same period last year.
The increase in sales in physical stores in the second quarter was 6.5% (excluding fuel), compared to the corresponding period last year. Analysts had expected a 5.9% increase.
The e-commerce industry’s sales rose 12% year-over-year in the quarter, compared to two years ago where growth reached 18%.
Walmart stock was trading lower at the close on Monday 8% from the beginning of 2022, with its capitalization standing at $363.48 billion.
Source: Capital
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