Walmart raised its full-year forecast Thursday, as fiscal first-quarter sales rose nearly 8% and its large grocery business helped offset weaker sales of clothing and electronics.
Walmart stock gains 2% premarket after Q1 results.
The discounter said it now anticipates consolidated net sales will rise about 3.5% in the fiscal year. It expects adjusted earnings per share for the full year will be between $6.10 and $6.20,
Chief Financial Officer John David Rainey said consumers are trading down to smaller pack sizes, buying fewer discretionary items and waiting for promotions before making pricey purchases like TVs.
Yet shoppers are still spending, he added.
Here’s what Walmart reported for the three-month period that ended April 30, according to Refinitiv consensus estimates:
Earnings per share: $1.47 adjusted vs. $1.32 expected
Revenue: $152.30 vs. $148.76 billion expected
Net income for the big-box retailer fell to $1.67 billion, or 62 cents per share, compared with $2.05 billion, or 74 cents per share, a year earlier.
Total revenue rose to $152.30 billion from $141.57 billion in the year-ago period, beating Wall Street’s expectations.
Same-store sales for Walmart U.S. rose 7.4%, excluding fuel. The key industry metric includes sales from stores and clubs open for at least a year. E-commerce sales jumped 27% year over year for Walmart U.S.
Despite sales growth, Rainey said Walmart saw spending get slower as the quarter went on. He attributed that, in part, to the end of pandemic-related emergency funding from the Supplemental Nutrition Assistance Program and a decline in tax refund amounts.
Shares of Walmart closed Wednesday at $149.53, bringing its market value to $403.33 billion. Its stock has climbed nearly 6% year to date. Shares have trailed the S&P 500′s roughly 8% gain and the XRT’s nearly 2% gain during the same period.
