Walmart stock rose more than 6% and was pacing for a record close on Thursday as investors digested an upbeat forecast from the retailer.
Yahoo Finance’s Brooke DiPalma reports:
For its fiscal 2025, Walmart now expects sales to grow between 3.75% and 4.75%, with adjusted earnings per share coming in between $2.35 and $2.43. That’s compared to previous guidance of net sales growing on the higher end of 3% to 4%, and adjusted earnings per share in the range of $2.23 to $2.37.
In Q2, revenue grew 4.8% to $169.34 billion, compared to the $168.46 billion expected. Adjusted earnings also beat estimates at $0.67 per share, a 9.8% year-over-year increase.
“Each part of the business is growing,” CEO Doug McMillon said in the release. “Store and club sales are up, eCommerce is compounding as we layer pickup and even faster growth in delivery as our speed improves.”
He added that the retailer’s online marketplace, membership model, and ad business (which grew 26% globally) helped to diversify its profits.
US same-store sales are up 4.3%, including a 4.2% increase for its namesake Walmart business, and a 5.2% jump for Sam’s Club.
Groceries remain a key business, a major factor behind the higher foot traffic and ticket sizes.
“We know that they’re looking for value and their dollars are stretched, they’re focusing in on those things that are providing value for them, they’re being choiceful when they buy the larger ticket items,” CFO John David Rainey told Yahoo Finance.