Walmart (NYSE:WMT) on Tuesday reported second-quarter earnings that exceeded Wall Street expectations as the retail giant gained ground in groceries and had a strong start to the back-to-school season.
The discounter also sharpened its forecast for the year, saying it now anticipates that earnings per share will range from $6.20 to $6.35. It said it expects Walmart U.S. same-store sales to increase by 5% to 6%, excluding fuel.
Earnings per share proved to be $1.78 adjusted vs. $1.57 expected, while revenue was $141.05 billion vs. $137.17 billion expected
Chief Financial Officer Brett Biggs said customers flocked to stores for items like luggage, party supplies and apparel as they were "coming out of hibernation." Plus, he said, families have been buying backpacks and items for the classroom.
Biggs said the company is watching the delta variant closely as COVID cases rise, but it has not seen a change in customers’ shopping patterns.
"Mask wearing is back up again, but runs on supplies — things we saw in last March, April [of 2020] — we really haven’t seen again."
CEO Doug McMillon said in a news release that the company grabbed more market share in grocery, one of its core businesses. He said it has also made progress in new areas, adding thousands of online sellers to its third-party marketplace and nearly doubling advertising sales in Walmart U.S. in the quarter versus a year ago.
WMT shares hiked 40 cents to $151.15.
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