© Reuters.
Investing.com — Walmart (NYSE:) has improved its annual adjusted (EPS) and net sales guidance after budget-conscious shoppers helped the world’s largest retailer post better-than-anticipated second-quarter profit.
The company now sees full-year adjusted EPS at $6.36 to $6.46, up from its prior guidance of $6.10 to $6.20. The figure topped Bloomberg consensus estimates of $6.28 for the forecast.
Meanwhile, net sales are projected to grow by about 4% to 4.5% in its 2024 fiscal year. Walmart’s previous outlook for the figure had been approximately 3.5%.
Shares in Walmart jumped in premarket U.S. trading on Thursday.
In a statement, Chief Executive Officer Doug McMillon noted that Walmart’s food segment had been a source of “strength” for the group in the 13 weeks ended on July 29. Groceries have been a key performance driver for Walmart during a recent bout of elevated inflation in the U.S., helping the business overcome a broader pullback in spending on nonessential items that has hit peers like DIY chain Home Depot (NYSE:) and big-box firm Target (NYSE:).
McMillon added that he is “encouraged” by results in general merchandise, which includes discretionary items, versus Walmart’s expectations at the beginning of the quarter.
Total U.S. comparable sales, excluding gas, increased by 6.3% during the second quarter, above projections for an uptick of 4.04%. Revenue of $161.6 billion and earnings per share of $2.92 were also higher than forecasts.
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