U.S. retailer Walmart, the world’s largest retailer, increased second-quarter operating profit 6.7 percent to $7.32 billion. Revenue beat estimates.
Above analysts’ expectations
Walmart is benefiting from its lower-priced offerings on virtually everything – from perishables to apparel – that are attractive to inflation-hit Americans. Sales at U.S. Walmart stores open at least a year rose 6.4 percent in the three months through the end of July, excluding fuel. Analysts in a Refinitiv poll had estimated sales would rise just 4.4 percent.
“Food is a strength, but we are also encouraged by our performance in general merchandise versus our expectations at the beginning of the quarter,” Walmart CEO Doug McMillon said in a statement. Walmart is also benefiting from lower supply chain costs and the fading of discounts it previously implemented to reduce excess inventory.
Forecasts for 2024
The retail giant now expects earnings for fiscal year 2024 to be in the range of $6.36 to $6.46 per share. It had previously estimated earnings of $6.10 to $6.20. Analysts polled by Refinitiv IBES on average estimated earnings of $6.28 per share. The company also forecast net sales to grow four to 4.5 percent, previously expecting a 3.5 percent increase.
Source Czech Press Office
