As inflation eases and consumers continue to hunt for bargains, Walmart is reaping the rewards. Walmart shares rose 7% on Thursday after the release of strong second-quarter results. The company’s performance was bolstered by an influx of higher-income shoppers, as well as growth in advertising and e-commerce.
Walmart noted in its latest earnings report that its affordable and convenient offerings continue to appeal to customers of all income levels, with the biggest increases coming from high-income households.
In early March, Walmart announced plans to remodel about 650 stores to attract more affluent customers. These improvements include better lighting, a greater emphasis on mannequins, fewer product displays and a focus on higher-value items.
Following the earnings announcement, Walmart’s stock price rose sharply in early trading, reaching around $73 per share. The Arkansas-based retailer beat Wall Street expectations, reporting second-quarter revenue of $169.3 billion, or around $0.67 per share. Analysts had forecast revenue of $168.6 billion, or around $0.65 per share, according to FactSet.
Walmart, the largest retailer in the U.S., also raised its full-year forecast, citing stable consumer demand. However, the company cautioned that it expects consumer demand to be slightly below Wall Street forecasts. For fiscal 2025, Walmart expects sales growth between 3.75% and 4.75%, up from its previous forecast of 3% to 4%.
The earnings report follows a sharp rise in June, when Walmart shares hit an all-time high after JPMorgan analysts upgraded their rating, highlighting the retailer’s strong balance between defensive and offensive strategies in a challenging consumer spending environment.
Walmart CEO Doug McMillon noted that the company’s newer ventures, such as its online marketplace, advertising unit and membership program, also contributed to profitability.
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