Walmart lifts full-year adjusted income per share forecast, but flags consumer spending pressures

(Updated - November 16, 2023 7:46 AM EST)

Investing.com -- Walmart (NYSE: WMT) has lifted its annual adjusted earnings guidance, although the retail giant retained some caution around the state of the U.S. consumer heading into the crucial holiday shopping season.

Walmart improved its outlook for full-year adjusted income per share to between $6.40 to $6.48, up from its prior range of between $6.36 to $6.46. Bloomberg consensus estimates had called for guidance of $6.48.

Total U.S. comparable sales, excluding gasoline, rose by 4.7% in the third quarter, a faster clip than estimates of 3.35%, thanks to strength in the company's eponymous stores, its Sam's Club membership-only division, and its e-commerce offering. Adjusted per-share income of $1.53 also slightly beat forecasts.

"We had strong revenue growth across segments for the quarter, and we’re excited to get an early start to the holiday season," said Chief Executive Officer Doug McMillon in a statement.

He added that inventory is in "good shape" after having declined by 5% in the U.S. during the three months ended on Oct. 31.

Unlike some of its big-box peers, Walmart has largely been able to weather a downturn in spending on big-ticket items by leaning on its reputation for offering low costs on essentials like groceries.

However, Chief Financial Officer John David Rainey told CNBC that inflation-hit consumers are still continuing to put off larger purchases as they await promotional periods. Rainey also said that there were trends that "made us pause" in the final weeks of October, CNBC reported.

Shares in Walmart slipped in premarket U.S. trading on Thursday.

You May Also Be Interested In

• Micron surges 5.5% on blockbuster Anthropic AI deal ahead of earnings
• AeroVironment restates quarterly financials, citing $89M goodwill error
• RBC Capital Starts Molina Healthcare (MOH) at Sector Perform