Walmart's promise of low prices proves to be a powerful draw in the third quarter
Walmart ratcheted up sales and profits again in the third quarter with its comparatively low prices proving a powerful draw for shoppers seeking to cut spending where they could
NEW YORK — Walmart is heading into the official start of the holiday shopping season with strong tailwinds after ratcheting up better-than-expected fiscal third-quarter sales in many items including toys, home goods and groceries.
The robust results, announced Tuesday, underscore how Walmart's comparatively low prices have become a powerful draw for shoppers seeking to cut spending where they could in a still inflationary environment.
The nation’s largest retailer, based in Bentonville, Arkansas, also raised its outlook. The company's shares rose more than 4%, or $3.67, to $87.75 in morning trading.
“We’re encouraged by the steady momentum building across the business,” Walmart's Chief Financial Officer John David Rainey told analysts during Tuesday's earnings call.
Walmart is among the first major U.S. retailer to report quarterly results and provides a peek into how Americans are feeling as they head into the holiday season. Rainey told The Associated Press during a call on Tuesday that shoppers are spending more on food than general merchandise, and they're becoming more discerning when it comes to big-ticket items like TVs.
One of the most challenging parts of the business has been the clothing business, dragged down by unseasonably warm weather that has made it hard to sell sweaters and coats, Rainey said.
Industry analysts expect consumers to show up in force, though sales may not meet last year spending levels by Americans.
A post-pandemic inflation spike sent prices about 20% higher overall compared with three years ago and it soured
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