Source: AFP
US retail giant Walmart reported a rise in revenue on Thursday from increased e-commerce and advertising sales and raised its outlook for the year.
Given its sheer size and presence in the United States, Walmart’s earnings are closely watched for signs of the broader health of U.S. consumers.
Its strong U.S. sales for the second quarter of the year suggest that consumers, still facing rising costs of many household items after the pandemic, are choosing to shop at Walmart over more expensive grocers.
“So far we are not experiencing a weaker consumer overall,” Walmart Chief Executive Doug McMillon said during an earnings call before the market opened.
“Customers from all income levels are looking for value and we have it,” he added.
Walmart’s revenue rose 4.8 percent to $169.3 billion in the second quarter compared with the same period a year earlier, it said in a statement.
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Earnings fell 43%, driven in large part by an unusual rise in the share price of several Walmart-backed companies during the same period last year. Operating income rose 8.5 percent — a sign that its core business is doing well.
The results beat analysts’ estimates, raising his outlook for the year. Shares rose nearly seven percent in premarket trading.
“We see no signs of customer debauchery,” Walmart said in a statement Wednesday.
“Customers continue to be selective and demanding,” she continued, adding that every part of her business has grown.
Walmart’s reported that its global e-commerce sales rose 21% in the second quarter, “led by in-store pickup and delivery and shopping.”
Meanwhile, its global advertising business grew 30%, fueled by a 30% rise in Walmart Connect business in the US.
Source: AFP
