• CNBC’s Jim Cramer analyzed Walmart’s quarter and said the wholesaler’s strong results were due to its successful business strategy and not necessarily an indicator of a favorable consumer landscape.
• “Don’t make the mistake of assuming that Walmart’s results give you some kind of general picture of the consumer,” Cramer said. “You can’t just extrapolate from the best operator in the industry to everyone else.”

CNBC’s Jim Cramer analyzed Walmart’s quarter and said the wholesaler’s strong results were due to its successful business strategy and not necessarily an indicator of a favorable consumer landscape.

“Don’t make the mistake of assuming that Walmart’s results give you some kind of general picture of the consumer,” Cramer said. “You can’t just extrapolate from the best operator in the industry to everyone else.”

Walmart beat analysts’ expectations for earnings and revenue on Thursday and raised its full-year forecast. The stock hit a new 52-week high and closed up 6.6%.

Investors are generally concerned about the state of consumer spending in the retail sector as inflation persists, but CEO Doug McMillon said on the conference call that the company has so far “not seen an overall weaker consumer.” Walmart also reported solid business in China, where many other large consumer-focused companies are lagging.

Although Thursday also saw the release of a better-than-expected consumer spending report for July, Cramer said Walmart’s success is down to its affordable prices and convenient services like online delivery. He said when a company keeps prices at a reasonable level, “traffic takes care of itself.”

Walmart management said on the conference call that the retailer is seeing more engagement and that the majority of the gains are coming from higher-income customers. McMillon said this group is willing to spend more on non-essential items and conveniences.

Walmart is one of the first major retailers to report its results for the season. While Cramer is optimistic about the competition, he stresses that Walmart is the frontrunner.

“This quarter is a testament to Walmart’s management continuing to do a great job,” he said. “I hope the rest of retail catches up, but when it comes to brick-and-mortar, Walmart, with the exception of Costco, is in a league of its own. And you know what, I think there’s still room for improvement.”

Walmart did not immediately respond to a request for comment.

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