Anne D’Inocenzio, The Associated Press
14 minutes ago
FILE – A woman pushes a shopping cart at Walmart in Rolling Meadows, Illinois, on Nov. 5, 2020. Walmart will report earnings on Thursday, November 16, 2023. (AP Photo/Nam Y. Huh, File)
NEW YORK (AP) — Walmart posted strong quarterly profits heading into the holiday season, as its low prices attracted shoppers looking for a deal in a tough economic environment.
The Bentonville, Arkansas-based company reported better-than-expected financial results for the period. Although the full-year forecast was revised upward, it was slightly below analysts’ expectations. Shares fell nearly 3% in premarket trading.
The company, the largest retailer in the United States, was one of the first major U.S. retailers to report quarterly results. Industry analysts are analyzing data to uncover more about how consumers are feeling as the holiday season approaches.
Shoppers remain resilient, supported by a strong labor market and stable wages. This has perplexed economists and Federal Reserve officials, and at times appears to contradict the harsh sentiments expressed by Americans themselves in public opinion polls. But while rising prices for food and other necessities are easing, rising housing and car loan costs continue to weigh on household budgets.
This is starting to show up in retail sales as well.
The U.S. Commerce Department said this week that Americans cut back on retail spending in October, halting a six-month streak of increases and causing retail sales to fall 0.1%.
Target on Wednesday announced strong third-quarter profit gains, but sales fell more than 4% as customers cut back on spending amid steep cost increases.
Home Depot, the nation’s largest home improvement chain, also saw sales decline as homeowners postponed major renovations and refrained from purchasing big-ticket items such as appliances, which are often purchased on credit. did.
Walmart reported profit of $453 million, or 17 cents per share, for the three months ended Oct. 31. In the same period last year, the company lost $1.79 million, or 66 cents per share. Adjusted earnings per share were $1.53.
Revenues increased 6.1% to $160.84 billion from $152.81 billion in the same period last year.
Analysts had expected revenue of $159.651 billion and revenue of $1.52 per share, according to FactSet estimates.
Same-store sales (sales from same-store and online operations over the past 12 months) for Walmart’s U.S. division increased 4.9% in the quarter. It rose 6.4% last quarter. Global e-commerce sales he increased by 15%.
The company expects annual sales to increase by 5% to 5.5%. The company expects adjusted earnings per share to be between $6.40 and $6.48. Analysts had expected earnings of $6.50 per share and revenue of $642.32 billion.