As Inflation cools down And Consumers continue to look for bargains, Walmart (WMT) gets a boostShares of Walmart rose 7% on Thursdayafter the retail giant posted robust Second quarter resultsGrowth in the last quarter was due to higher-income households turning to the discounter and its advertising and e-commerce divisions.
“The value convenience offering continues to be well received by customers and members,” the company said in its latest earnings releaseIt added that share gains had increased across all income groups but were “mainly driven by higher income households”.
In March, Walmart announced it would remodel about 650 of its stores. Attempt to attract more affluent buyersAt the time, the company announced that it would improve lighting, add more mannequins, reduce the number of displays and highlight high-end products.
Walmart CEO Doug McMillion said the company’s newer businesses, including its online marketplace, advertising unit and membership program, also contributed to profits.
Walmart’s results sent its stock price up to around $73 per share in the early morning hours.
The Arkansas-based company beat Wall Street expectations, reporting second-quarter revenue of $169.3 billion, or about 0.67 cents per share. Wall Street had forecast revenue of $168.6 billion, or about 0.65 cents per share, according to FactSet.
Walmart, the largest retailer in the US, also raised its full-year forecast, citing flat consumer demand. However, the retailer expects consumer demand to be slightly lower than Wall Street’s forecast. For fiscal 2025, it expects sales growth between 3.75% and 4.75%. It had previously forecast sales growth of 3% to 4%.
Walmart’s earnings figures are close behind a Huge stock gain in Junewhere shares hit an all-time high after analysts at JPMorgan raised their rating due to the retailer’s “strong balance between defense and offense” amid weaker consumer spending.
UBS analyst Michael Lasser said in a research note that Walmart is one of those that has “certainly done better than others,” in part due to its “resilience and strategic investments.” Better-than-expected sales may not have been exceeded, Lasser said, but the company’s focus on innovation, including its Bettergoods own brand inspired by chefsand essential school supplies helped the brand sell to consumers.
