Walmart has raised its full year guidance.
The retail giant is now expecting net sales growth of between 5 percent to 5.5 percent for fiscal 2024, up from 4.5 percent to 5 percent. Adjusted EPS is forecast between $6.40 and $6.48. Previously it estimated $6.36 to $6.46. This, however, was below analysts’ forecasts of $6.48.
Doug McMillon, president and chief executive officer of Walmart, said: “We’re excited to get an early start to the holiday season. From a Thanksgiving meal that costs less than last year, to great prices on fashion, toys, electronics, and seasonal decorations, we’re here to help families from around the world make this a special time. Looking ahead, our inventory is in good shape, the teams are focused, and our associates are ready to serve our customers and members whenever and however they want to be served.”
In the third quarter, revenue was $160.8 billion, up 5.2 percent, or 4.3 percent in constant currency.
Operating income was $3.5 billion. Adjusted EPS was $1.53, above Wall Street forecasts of $1.52.
Of the results, Neil Saunders, managing director of GlobalData, said: “Walmart was up against several challenges this quarter: a slowing consumer economy, a moderation in inflation, and tough prior year comparatives. It has comfortably cleared all these hurdles to produce another very strong set of results. Total sales growth of 5.2 percent is impressive, and in monetary terms means the businesses added almost $8 billion to the top line compared to the prior year. This was driven by good performances in both the domestic and international segments.”
Earlier this week, Target Corp. revealed it squeezed big profit gains out of a 4.2 percent revenue decline in the third quarter — managing costs closely as consumers continued to pull back on discretionary spending.