Discount retailer Walmart (WMT) has posted strong financial results for this year’s second quarter and raised its forward guidance.
The Arkansas-based company announced earnings per share (EPS) of $0.81 U.S., which surpassed the $0.74 U.S. that had been expected on Wall Street.
Revenue in the spring quarter totaled $187.94 billion U.S., which topped the $186.77 billion U.S. consensus expectation of analysts. Sales were up 5.9% from a year earlier.
Management at Walmart said the results got a boost from e-commerce sales that rose 23% year-over-year. At the same time, global advertising revenue climbed 38% in Q2.
The company also raised its guidance, with management saying they expect sales to increase 4% and 5% for the year, compared to a previous outlook of between 3.5% and 4.5% growth.
Walmart also anticipates full-year earnings of $2.80 U.S. to $2.87 U.S. per share, compared to previous guidance of $2.75 U.S. to $2.85 U.S. a share.
The world’s largest retailer is also eligible to receive roughly $2.9 billion U.S. in tariff refunds this year, money it plans to use to keep prices low for consumers.
So far, Walmart has gotten back less than $100 million U.S. of the tariff refund it is owed.
Management said the full tariff refunds should show up in the company’s third quarter results and lead to lower prices at Walmart stores.
Efforts to lower prices come as many American shoppers’ cutback on spending as they feel a strain from higher fuel and food costs.
Executives at Walmart acknowledged as much, saying they continue to see consumers stretched thin, especially with higher gasoline prices.
Heading into the latest financial results, WMT stock had risen 1% this year to trade at $114.30 U.S. per share.
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