Walmart (WMT) raised its full year guidance after its fiscal first quarterly reports beat Wall Street analysts’ expectations. Its sales rose by almost 8 percent in this quarter. Despite slow sales in clothing and electronics the giant retailer’s grocery business helped the company post good results. Shares also rose by one percent after they posted an increase in earnings and revenue.
Walmart changed its guidance after the increase in earnings. The new estimate of consolidated net sales for the year is 3.5 percent for the fiscal year. It has estimated its adjusted earnings per share to be between $6.10 to $6.20.
Chief Financial Officer John David Rainey told CNBC that although there has been some strain on the consumer, the “resilience has surprised us.”
Rainey also noted that consumers shifted towards groceries and essentials and decreased electronics and apparel shopping. Since Walmart is the nation’s largest grocer, the big box retailer weathered the economic storm better than other similar companies.
On an investor call, Rainey also said that curbside pickup and home delivery of purchases that were made online contributed to the growth of the big box retailer.
Walmart U.S. has seen an increase of 27 percent in e-commerce sales year-over-year, while Sam’s Club sales saw a milder 19 percent jump in sales.
On an investors call, Doug McMillon, CEO of Walmart said that family budgets are facing higher prices on daily use items such as groceries and paper goods. This leaves behind smaller amounts in the budget that can be used to purchase other items that may not be essential.
The CEO also said that inflation remained a key factor for the company’s uncertainty in the second half of the year.
Although Walmart shares trail behind the 8 percent gain in S&P 500, the giant retailer is ahead of the XRT’s nearly 2 percent rise as Walmart has seen a 6 percent rise this year, as of now.
About Walmart
Walmart Inc. (NYSE: WMT) helps people around the world save money and live better — anytime and anywhere — in retail stores, online, and through their mobile devices. Each week, over 265 million customers and members visit approximately 11,500 stores under 56 banners in 27 countries and eCommerce websites. With fiscal year 2020 revenue of $524 billion, Walmart employs over 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart and on Twitter at twitter.com/walmart.
NYSE: WMT CWEB Analysts view the stock as a long-term growth and a great addition to your investment portfolio with upward momentum.
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