Sales at Walmart stores open for at least a year rose by 6.4%, excluding fuel, in the three months from May to the end of July, while the market was betting on 4.4%. "Food is a strong point, but we are also encouraged by our results in general merchandise compared with our expectations at the start of the quarter," explained CEO Doug McMillon. The giant was able to draw on lower supply chain costs and reduced discounts that had been put in place to reduce excess inventory. "We're in a good position as far as inventories are concerned, and we've improved our situation ahead of the second half of the year," McMillon continued.
Targets raised
On Wednesday, Target, a smaller competitor, had also exceeded quarterly earnings estimates.
Market prefers Walmart's positioning in 2023
Walmart's second-quarter gross margin increased by 50 basis points, compared with an 18-basis-point decline in the first quarter.The Group raised its guidance, targeting earnings per share of between 6.36 and 6.46 USD per share for the year ending next January, compared with a previous forecast of 6.10 to 6.46 USD per share.previous forecast of 6.10 to 6.20 USD and a consensus of 6.28 USD, which had already anticipated a lower figure. Net sales are expected to rise by around 4% to 4.5%, compared with a previous forecast of around 3.5%.