American Marconi Wireless News - Walmart raises 2024 forecast after 'strong' quarter

The big retailer, which has been seen as well positioned amid inflation because of its reputation for value, enjoyed another quarter of growing sales at its namesake US stores, with robust demand for groceries and pharmaceuticals offsetting weakness in discretionary consumption and the effects of wage increases.

Walmart reported second-quarter profits of $7.9 billion, up 53 percent from the year-ago period, a period marred by excess inventories due in part to pandemic supply chain issues.

Revenues rose 7.6 percent to $152.3 billion.

"We had another strong quarter," said Walmart Chief Executive Doug McMillon in a press release. "Food is a strength, but we're also encouraged by our results in general merchandise versus our expectations when we started the quarter."

McMillon said the company is in a "good position" on inventory, adding "we like our position for the back half of the year."

Walmart's US division -- which accounted for more than two-thirds of revenues during the quarter -- jumped 6.4 percent in comparable sales, a closely watched industry data point.

The business won market share gains in groceries, higher prescription counts and benefited from price hikes on some goods. On the downside, Walmart also cited "softness" in discretionary areas including apparel, home and sporting goods.

Walmart lifted full-year projections and now sees full-year earnings of between $6.36 and $6.46 a share, up 26 cents from the prior range.

Shares rose 1.2 percent to $161.15 in pre-market trading.

S.Gregor--AMWN