Walmart earnings: Holiday shopping is off to a strong start

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Subscribe to enjoy similar stories. Walmart said U.S. sales rose during the most recent quarter as shoppers bought more groceries, home goods and toys, a sign that spending is off to a steady start at the start of the holiday shopping season.

The retail behemoth also raised its sales and profit estimates for the year. Sales: U.S. comparable sales, those from stores and digital channels in operation for at least 12 months, rose 5.3% for the quarter ended Oct.

25, driven by broad demand for its goods and market share gains across economic groups, including higher-income households. Analysts were expecting about 3.9% growth, according to FactSet. Most shoppers are spending consistently to enjoy holidays, said John David Rainey, Walmart chief financial officer, in an interview.

Toys are selling well, along with some everyday needs such as tires, he said. Apparel is weaker as unseasonably warm weather has likely delayed some purchases, he said. “Overall, we are feeling good about holiday," Rainey said.

But “consumers are still discerning," he said. “They are spending more of their wallets on food than they have historically." That means overall nonfood items are still growing slower than spending on consumables, he said. Profit: The retailer said profit increased in the most recent quarter, boosted by offering fewer discounts, lower e-commerce delivery costs and higher revenue from advertising.

Adjusted earnings were 58 cents per share, better than the FactSet analysts’ estimate of 53 cents. E-commerce: Global e-commerce sales rose 27% from the same period last year and now account for 18% of global revenue. Shoppers weighed down by higher prices for many everyday necessities such as food and health insurance are still