Walmart Inc (WMT.N) raised its full-year profit forecast on Tuesday and beat same-store sales estimates as it benefited from additional stimulus checks that put more money in its pockets consumers and have driven demand for clothing and electronics.
After a bumper year, supported by a strong push towards e-commerce and delivery, Walmart continues to experience growing demand as increased vaccinations and easing restrictions bring more people back to its stores.
“Our optimism is higher than it was at the start of the year. In the United States, customers clearly want to go out and shop … We expect pent-up demand throughout 2021,” he said. CEO Doug McMillon said in a statement. .
Sales at U.S. stores that have been open for at least a year increased 6%, excluding fuel, in the first quarter ended April 30. Analysts had estimated growth of 0.86%, according to IBES data from Refinitiv.
Online sales lost momentum, increasing 37%, compared to an increase of 74% in the period of the previous year and 69% in the previous quarter.
Walmart said it now expects FY2022 profits to rise to single digits, after the company previously forecast a slight decline in profits for the year.
Still, McMillon warned the second half of the year would have more uncertainty than a typical.
Operating profit rose 32.3% to $ 6.91 billion in the quarter, while Walmart reported adjusted earnings of $ 1.69 per share.
Total revenue increased 2.7% to $ 138.31 billion.
The company’s shares rose nearly 1% in pre-market trading.
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