NEW YORK (AP) — Walmart had another outstanding quarter of the year, reaching a wide range of shoppers, including cash-strapped Americans and wealthy Americans increasingly worried about the economy, posting stronger sales and profits that beat Wall Street expectations.
The nation’s largest retailer raised its earnings outlook Thursday after a strong third quarter, setting the stage for a strong holiday season as other retailers lowered their forecasts.
Bentonville, Ark.-based Walmart also announced Thursday that it will move its common stock listing from the New York Stock Exchange to the tech-heavy Nasdaq. The company’s common stock is expected to begin trading on the Nasdaq Global Select Market on December 9th under the same ticker symbol “WMT.”
CEO Doug McMillon surprised investors last week with plans to: I will retire early next yearwhich has reshaped itself as a technology-driven retail giant with a heavy leaning toward automation and artificial intelligence.
Since taking over as chief executive in 2014, McMillon has spearheaded a period of strong sales growth and taken on the likes of online giant Amazon. John Furner, 51, head of Walmart’s U.S. operations, will take over on February 1, the day after McMillon’s resignation takes effect.
The leadership changes come at a difficult time for U.S. companies, which have spent months navigating an uncertain economic environment. President Donald Trump impose widespread burdens customs duty It is pursuing an immigration crackdown that could limit imports and reduce the number of workers available in the United States.
Walmart’s performance serves as a barometer of consumer spending given its size and scope. Huge customer base. The company claims that 90% of U.S. households rely on Walmart for a variety of products, and that more than 150 million customers shop on its website and stores each week.
“We are gaining market share, improving delivery speeds and managing our inventory well,” McMillon said in prepared remarks. “We finished this year strong and are well-positioned for what lies ahead.”
U.S. Walmart store comparable sales (sales from established brick-and-mortar stores and online channels) increased 4.5% in the third quarter, just below the 4.6% seen in the previous quarter.
Walmart said it is increasing market share across all income brackets, with the biggest gains being among households earning more than $100,000 a year.
Walmart Chief Financial Officer John David Rainey told The Associated Press on a call Thursday that while spending among middle-income shoppers remained steady, there was a rebound among lower-income shoppers in the second half of the quarter. He said business was hampered by the expiration of Supplemental Nutrition Assistance Program benefits due to the government shutdown, but sales have rebounded.
“There will always be a performance gap between high-income and low-income people,” he says. “But that gap has widened even more recently, showing that lower-income consumers are spending money. They’re not buying some discretionary items.”
In response, the company increased the number of rollbacks (temporary price discounts) to 7,000.
Meanwhile, other retailers are reporting mixed results.
Target’s third quarter profit fell Retailers were struggling to attract shoppers amid persistently high inflation. The Minneapolis-based company said Wednesday that it expects the sales slump to continue into the critical holiday season.
Home Depot reported third-quarter results on Tuesday, but it was a mixed picture as fewer severe storms hit the coast and more formed. US consumer anxiety And the housing market deep funk. The company lowered its adjusted profit forecast for fiscal 2025, but raised its sales growth forecast.
TJX, which operates HomeGoods and TJ Maxx, raised its full-year outlook and posted higher profits and sales in recent quarters as it continues to attract shoppers looking for great deals on trendy items.
Walmart’s third-quarter profit rose to $6.14 billion, or 77 cents per share, for the quarter ended Oct. 31. Adjusted earnings were 66 cents, or 6 cents more than Wall Street expected, according to a FactSet poll. This is significantly higher than the $4.58 billion, or 57 cents per share, the company earned in the same period last year.
Revenue rose nearly 6% to $179.5 billion, also exceeding most analysts’ expectations.
Global e-commerce sales increased by 27%. This follows a 25% increase in the second quarter and a 22% increase in the first quarter.
Walmart said it was able to manage higher costs from President Trump’s tariffs by changing its product mix and absorbing some of the costs. According to the company, prices for Walmart products rose an average of 1.3% in the most recent quarter. Although this is higher than overall inflation, Although it rose 3% in September,
Walmart said prices for items such as electronics, toys and seasonal items rose the most, with increases of roughly high single digits.
The company said it expects adjusted earnings to be in the range of $2.58 to $2.63 per share this year, up from its August guidance of $2.52 to $2.62 per share.
Walmart expects sales to increase 4.8% to 5.1% this year. This is up from the original expected range of 3.75% to 4.75%.
Analysts had expected $2.61 per share, according to FactSet analysts.
Walmart stock rose $6.23, or more than 6%, to $106.85 in late morning trading.
