Global site navigation

Walmart lifts forecast as it wins US grocery consumers due to inflation
Business and Economy

Walmart lifts forecast as it wins US grocery consumers due to inflation

by  AFP 1 min read
Walmart has gained market share in US grocery with higher income shoppers in an inflationary period
Walmart has gained market share in US grocery with higher income shoppers in an inflationary period. Photo: JOE RAEDLE / GETTY IMAGES NORTH AMERICA/Getty Images via AFP/File
Source: AFP

PAY ATTENTION: Enjoy reading our stories? Join YEN.com.gh's Telegram channel for more!

Walmart raised its full-year profit forecast on Thursday following strong sales growth in the United States fueled by gains in grocery and other household staples.

The giant US retailer, which has been seen as a winner in a period of consumer inflation pressure because of its ability to keep prices lower through economies of scale, pointed to gains in grocery market share in the United States with higher-income households.

Walmart now sees full-year adjusted profits of $6.10 to $$6.20 per share, up from the prior range of $5.90 to $6.05 following the results, which topped analyst estimates and shares in pre-market trading.

Profits were $1.7 billion, down 18.5 percent from the year-ago period. Revenues were $152.3 billion, up 7.6 percent.

In the Walmart US division, which accounts for more than two-thirds of sales, the company scored a lofty 7.4 percent gain in comparable store sales.

Read also

UK touts $22 bn in Japanese investment as Sunak visits Tokyo

Results in the United States benefited from a moderation in supply chain and freight costs.

PAY ATTENTION: Follow us on Instagram - get the most important news directly in your favourite app!

Besides grocery, sales also rose in pharmacy due to increased prescription volume. Revenues also jumped in pet and personal care, due in part to inflation.

Offsetting these benefits were declines in general merchandize, with the company pointing to "softness" in discretionary areas such as home, electronics and apparel, according to a Walmart presentation.

Shares of Walmart rose 1.9 percent to $152.30 in pre-market trading.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Hot: