Walmart (WMT) earnings Q2 2024

Walmart on Thursday raised its full-year forecast, as the discounter leaned on its low-price reputation to draw grocery customers and drive online spending.

The big-box retailer beat Wall Street’s expectations for sales and profits. E-commerce sales for Walmart U.S. also jumped 24%.

Walmart said it now expects full fiscal year consolidated net sales to increase by about 4% to 4.5%. It said adjusted earnings per share for the year will range between $6.36 and $6.46. That compares with its prior guidance for consolidated net sales gains of 3.5% and an adjusted earnings per share increase of between $6.10 and $6.20.

In a CNBC interview, Chief Financial Officer John David Rainey said Walmart saw “modest improvement” in the quarter with sales of big-ticket and discretionary items, such as electronics and home goods. Sales of those items have been weaker for more than a year as Americans spend more on necessities like food. 

He described the consumer as “choiceful or discerning” and said seasonal moments, such as the Fourth of July holiday and back-to-school, have helped drive sales.

Shares rose about 2% in premarket trading.

Here’s what the company reported for the three-month period ended July 31 compared with what analysts were expecting, according to consensus estimates from Refinitiv:

• Earnings per share: $1.84 adjusted vs. $1.71 expected
• Revenue: $161.63 billion vs. $160.27 billion expected

Walmart’s net income for the quarter jumped by about 33% to $7.89 billion, or $2.92 per share, compared with $5.15 billion, or $1.88 per share a year earlier. 

Same-store sales for Walmart U.S. increased 6.4% in the second quarter, excluding fuel, compared with the year-ago period. 

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