Walmart shines in Q2 and bumps up expectations for the year

economictimes.indiatimes.com:

Walmart reported strong second-quarter sales results as the retailer's low-price model continues to attract budget conscious consumers in a tough economic environment. The largest retailer in the US boosted its annual outlook again, sending shares up 2% before the opening bell Thursday. Walmart, based in Bentonville, Arkansas, earned $7.89 billion, or $2.92 per share, for the three-month period ended July 31.

Adjusted results were $1.84 per share, or 13 cents better than Wall Street had expected, according to a survey of industry analysts by FactSet. It was also up from last year's quarterly profit of $5.15 billion.Sale rose nearly 6% to $161.63 billion, a shade better than expected. Comparable store sales — those from established stores and online operating over the past 12 months — rose 6.4% at Walmart's US division.

That compares with 7.4% in the quarter ended April and the 8.3% during the fourth quarter. Global online sales surged 24% In the previous period, that figure was up 26%. Sales for a lot of retailers have begun to fade as Americans pull back on discretionary spending for things like appliances, clothing or electronics.

Target reported its first quarterly sales decline in six years on Wednesday.Home Depot, the nation's largest home improvement retailer, said Tuesday that sales continued to decline, led by purchases of big-ticket items like appliances and other things that often require financing. That's become a problem with interest rates rising rapidly over the past year, making credit cards and a much bigger burden for consumers. This week, the US reported that Americans increased their spending last month, but higher interest rates are weighing on economic activities that are highly dependent on credit,