The retail giant – Walmart – topped Wall Street’s expectations as its grocery business started to recover ground with its strong start in back-to-school sales. For the fiscal Q2 ended July 31, the company reported an adjusted EPS of $1.78, topping the $1.57 consensus. Revenues also came ahead of estimates, at $141.05 billion, marking a 2.4% increase from the figures reported a year prior.
Brett Biggs, Walmart CFO, stated that customers mainly shopped for luggage, party supplies, and apparel. At the same time, families focused on backpacks and items for the classroom.
Walmart reported its highest quarterly revenue ever for three months outside of the holiday season. The same-store sales in the US grew 5.2%, significantly higher than the 3.3% expected. According to Walmart, over the past two years, the same-store sales increased 14.5%.
For the future, Walmart is looking for the EPS to reach a high of $6.35, while the US same-store sales to increase 6%.
Since the beginning of the year, Walmart shares gained 5%, while USA500 added 33%.