US retail giant Walmart has topped analysts’ earnings estimates in the second quarter of the year, which it lowered last month as it warned of inflationary pressures.
In the three months to July 29, adjusted earnings per share was 1.77 dollars, just one cent lower than a year ago, and higher than analysts’ estimates of 1.62 dollars, according to data from Refinitiv.
The results come after Walmart last month lowered its profit outlook for the second quarter and full year as consumers cut back on spending amid rising inflation.
It said at the time it expected FY adjusted earnings per share to decline by around 11 percent to 13 percent - against a previous estimate of just a 1 percent drop.
Based on its Q2 results, it now expects that decline to be slightly smaller, by between 9 percent to 11 percent.
Walmart’s total Q2 revenue came in at 152.9 billion dollars, up 8.4 percent from a year ago, or up 9.1 percent in constant currency.
Walmart CEO and president Doug McMillon told investors: “We’re pleased to see more customers choosing Walmart during this inflationary period, and we’re working hard to support them as they prioritize their spending.
“The actions we’ve taken to improve inventory levels in the US, along with a heavier mix of sales in grocery put pressure on profit margin for Q2 and our outlook for the year. We made good progress throughout the quarter operationally to improve costs in our supply chain, and that work is ongoing.”
Walmart now expects consolidated net sales growth of around 4.5 percent for the full year, while it expects Walmart US comparable sales growth, excluding fuel, of about 3 percent.