Walmart’s fiscal quarterly earnings topped analysts’ expectations
The hypermarket chain reported for fiscal Q3 an adjusted EPS of $1.45, slightly beating the $1.40 expected. At the same time, the revenue came in at $140.53 billion, compared to the $135.60 billion expected. The revenue marked an approx. 4% increase from $134.7 billion reported in the year-ago period.
Walmart’s US same-store sales rose 9.2%, higher than the 6.9% expected by analysts. The e-commerce sales in the US increased by 8% in the quarter and 87% on a two-year basis.
Inflation is the latest issue that stores face, but Walmart seems to approach this situation better than other retailers. Brett Biggs, Walmart CFO, stated: “We’ve always been an inflation fighter for customers. […] Our scale and the product breadth that we have allows us to do things in a way that is beneficial to customers and beneficial to shareholders.” As Walmart is known for its “everyday low price,” consumers might buy more of their groceries, clothes, and other goods from it.
According to Biggs, Walmart is feeling pressure from the rising prices of fuel, shipping, and products, but Walmart has reduced the number of promotions without hurting sales.
Walmart updated the forecast for the year to adjusted earnings per share of $6.40 versus its prior expectation of $6.20 - $6.35.
As of Monday’s close, Walmart shares gained about 2% year-to-date. Its shares have lagged the USA500, which is up 30% so far.
Sources: cnbc.com, thestreet.com