Atchison, Kansas. Walmart store logo with gardening products for sale. (Photo Credit: Michael Siluk/UCG/Universal Images Group via Getty Images)

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walmart Thursday raised its full-year forecast, as the discounter relied on its low-price reputation to attract grocery customers and drive online spending.

The big-box retailer beat Wall Street’s expectations in terms of sales and profits. Walmart US’s e-commerce sales also grew 24%.

Walmart said it now expects consolidated net sales to grow by about 4% to 4.5% for the full fiscal year. It said adjusted earnings per share for the year would be between $6.36 and $6.46. This compares to its prior guidance for a consolidated net sales profit of 3.5% and adjusted earnings per share growth of between $6.10 and $6.20.

In a CNBC interview, Chief Financial Officer John David Rainey said Walmart saw “modest improvement” in the quarter with sales of big-ticket and discretionary items such as electronics and home goods rising. Sales of those items have been weak for more than a year as Americans spend more on necessities like food.

He described the consumer as “selective” and said seasonal moments like the Fourth of July holiday and back-to-school have helped drive sales.

Shares were up about 2% in premarket trading.

Here’s what the company reported for the three-month period ended July 31, compared with what analysts were expecting, according to Refinitiv’s consensus estimate:

  • Earnings per share: $1.84 adjusted versus $1.71 expected
  • Revenue: $161.63 billion vs. $160.27 billion expected

Walmart’s net income for the quarter rose nearly 33% to $7.89 billion, or $2.92 per share, compared with $5.15 billion, or $1.88 per share, a year ago.

Walmart US same-store sales in the second quarter, excluding fuel, rose 6.4% compared to the year-ago period.

This story is developing. Please check back for updates.

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