Shares of Walmart Inc. on Thursday rose more than 6 per cent after the retailer posted stronger quarterly profit.
At 1:02 p.m. EDT, Walmart shares were at $63.51, up $3.68, or 6.15 per cent on the NYSE.
Bentonville-based Walmart on Thursday announced better-than-expected earnings for the first quarter as its low prices pull in shoppers amid stubbornly high inflation.
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The largest US retailer reported profit of $5.10 billion, or 63 cents per share for the quarter ended April 30, as compared with $1.67 billion, or 21 cents per share, in the same period last year.
Its adjusted earnings per share (EPS) was 60 cents.
Its revenue rose 6 per cent to $161.51 billion in the quarter, up from $152.3 billion in the year-ago quarter.
Walmart said its customers are spending more on necessities while cutting back on discretionary goods like home furnishings and electronics.
Shoppers are looking for food storage items as they focus on eating at home to save money. And they’re shifting more to private brands over national brands, which tend to be more expensive, the retailer added.
“Our combination of everyday low prices plus a large number of rollbacks is resonating,” said Walmart CEO Doug McMillon.
In the past 12 months, at Walmart’s US division 4.4 billion items were delivered on the same or next day, with about 20 per cent of those delivered in under three hours, McMillon said.
Walmart said total US comparable sales rose 3.9 per cent, excluding fuel, in the first quarter.
Walmart also raised its full-year forecast.
US stocks extended gains on Thursday, a day after inflation data buoyed expectations for interest rate cuts by the Federal Reserve.
At 11:28 a.m. ET, the Dow Jones Industrial Average was up 112.55 points, or 0.28 per cent, at 40,020.55, the S&P 500 was up 13.11 points, or 0.25 per cent, at 5,321.26, and the Nasdaq Composite was up 35.67 points, or 0.21 per cent, at 16,778.06.
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Published: 16 May 2024, 10:36 PM IST
