Sales at U.S. stores open at least a year rose 5.2%, excluding
fuel, in the second quarter ended July 31. Analysts had
estimated a growth of 3.69%, according to IBES data from
Refinitiv.
Walmart has been one of the beneficiaries of the stimulus checks
given during the pandemic, with the latest quarter also getting
a lift from President Joe Biden administration's advance child
tax credits.
The company said it now expects fiscal 2022 U.S. same-store
sales to be up 5% to 6%, compared with the low single digits
growth it had previously forecast.
"We grew market share in U.S. grocery, added thousands of new
sellers to our marketplace, rapidly grew advertising businesses
around the world," Chief Executive Officer Doug McMillon said in
a statement.
Walmart kicked off a big week of earnings from major U.S
retailers, including Target and Macy's, which come as investors
focus on a resurgence in COVID-19 cases due to the more
contagious Delta variant and cost pressures from persisting
labor shortages and supply chain disruptions.
Still, Walmart forecast full-year and current-quarter profit to
be largely above expectations. The outlook accounted for the
continued strength in the U.S. economy and no significant
additional government stimulus for the rest of the year.
The company, which reported its biggest online sales growth of
97% last year as people used its quick delivery services to
order essentials at the height of the pandemic, said U.S.
e-commerce sales rose 6% in the second quarter.
Operating income rose 21.4% to $7.35 billion, while Walmart
reported adjusted earnings per share of $1.78.
Total revenue rose 2.4% to $141.05 billion, ahead of
expectations of $137.17 billion.
(Reporting by Aishwarya Venugopal in Bengaluru and Richa Naidu
in Chicago; Editing by Sriraj Kalluvila)
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