Walmart has set itself apart from the pack, beating second-quarter expectations and raising its yearly forecast while most others have fallen victim to low consumer sentiment.
Walmart reported better-than-expected second-quarter earnings and raised its yearly forecast as inflation-battered shoppers flocked to its low-priced food, clothing and home goods.
Walmart shone thanks to its affordability. Comparable sales, excluding fuel, rose 4.2% in the second quarter since the same period last year, beating expectations.
Its online sales soared 22% in the US – and customers spent more than usual, with transactions up 3.6% and average spending rising 0.6% since the same period last year.
Walmart’s big box chain Sam’s Club sales grew 5.2%, which fell in line with expectations.
“Everyone feels relief that everything is ok with the consumer because of Walmart’s results, but a lot of higher income people are trading down to Walmart, so people are trying to save where they can,” Edward Jones analyst Brian Yarbrough told The Post.
The Arkansas-based retail giant’s shares spiked 6.7% on the strong earnings report Thursday, peaking at $74.07 a share.
Prior to the jump, the company’s stock was up about 30% so far this year – above the S&P 500’s 15% growth.
Walmart reported adjusted earnings per share of 67 cents, topping LSEG analysts’ expectations of 65 cents.
The retailer raked in revenue of $169.34 billion, above analysts’ estimates of $168.63 billion and up nearly 5% since the same period last year.
The Arkansas-based company raised its sales expectations between 3.75% and 4.75% from 3% and 4%.
It hiked its earnings per share predictions between $2.35 and $2.43 a share from $2.23 and $2.37 a share.
“The only place anyone is shopping right now is Amazon, Walmart and Costco,” Michael Baker, an analyst at DA Davidson, told CNN.
The retailer took steps to cater to cash-strapped customers. It ramped up its advertising efforts and launched a value grocery brand called Bettergoods selling meals like chicken wings and frozen pizzas for less than $5.
