Walmart Inc. reported better-than-expected results for the first quarter, as price-conscious shoppers traded down to cheaper meat products and store brands. Sales at Walmart's U.S. stores open at least a year rose 7.4%, excluding fuel, beating expectations of a 5.25% increase. The company also saw higher demand for health and wellness products, driven by strong demand for food and increased purchases from wealthier households.
Despite this, Walmart's strong results are in stark contrast to smaller rival Target's bleak second-quarter forecast, which it blamed on weak consumer demand.
The retail giant reports adjusted fiscal first-quarter earnings of $1.47 a share on revenue of $152.3 billion.. Walmart reported first quarter same-store sales growth that beat expectations as consumers traded down from traditional supermarkets and slowed purchases of discretionary merchandise from rivals like Target (TGT).
The company also raised its full-year earnings per share forecast to a range of $6.10-$6.20 per share, up from its prior expectations for earnings to come in at $5.95-$6., and eCommerce sales were strong globally with eCommerce up 26%.
Walmart also saw good growth in membership income in both businesses while inventory and online sales declined 7% from the prior year period.
Shares of Walmart rose in premarket trading after the retail giant raised its sales outlook for the full year, benefiting as more consumers buy lower-priced items amid high inflation.
Revenue rose 7.6% to $152.3 billion in the quarter, beating Wall Street estimates; profit excluding special items also beat analysts' expectations at $1.47 a share.
The company raised its forecast for consolidated net sales for the entire year by 3.% This week; target-reported flat comparable-sales-and-home-depot said-its-revenues-had-declined in the most recent quarter.
Walmart Inc. lifted its annual profit forecast after its discount model powered new market-share gains in the US, but Chief Financial Officer John David Rainey said the retailer is retaining a cautious view on US consumers.
During the quarter, sales were strongest in February, then softened in March and April, while Target Corp. also warned of weakening sales trends this week.
Walmart rose 1.6% ahead of regular trading in New York; shares climbed 5.% this year through Wednesday trailing-the-s&p-index's-8..3-% gain-adjusted earnings for fiscal-year-ending-in early 2024 will be as much as $6.20 a share while Walmart said adjusted earnings in the second-quarter would be no more than $1.68 a share