Walmart CFO: Shoppers are hanging in there
Bending, but not breaking… yet.
That’s the vibe around the inflation-battered crowds wandering the aisles for the latest price rollbacks from Walmart (
WMT
), CFO John David Rainey told Yahoo Finance (video above).
“The consumer is hanging in there,” Rainey said Thursday, moments after
better-than-expected earnings
from America’s largest retailer hit the wire.
Walmart’s second quarter showed a retailer capitalizing on
penny-pinching consumers
, who are worried about nagging inflation, a contentious election season, and what appears to be a job market slowdown.
The company beat Wall Street estimates on sales and earnings, powered by a 4.2% comparable sales gain at its largest division — the namesake US business.
Walmart US saw sales gains in higher-frequency product categories such as food and health and wellness. Conversely, cautious shoppers visited discretionary departments like furniture and apparel less often.
Walmart’s US e-commerce sales rose a hearty 22%, also above estimates.
With the wind at its back, Walmart lifted its full-year sales and profit outlooks.
Shares of Walmart rose 6.5% in early trading.
Rainey added that the back-to-school shopping season is off to a “good” start.
“We continue to see potential upside ahead as traffic remains strong and e-commerce losses improve —we expect automation tech and AI to continue to play integral roles. Walmart’s strength continues, and with this improved consistency, as well as scaling of higher-margin rev streams, we believe a higher multiple is warranted,” Jefferies analyst Corey Tarlowe said in a note to clients.
Q2: The earnings rundown
What else caught our attention: Forward guidance
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