Walmart (NYSE: WMT) revealed that sales increased over 8% within the second quarter as consumers relied on the discounter for groceries and essentials. The retailer reported strong Second-quarter results, with shares rising more than 5% during early morning trading amid the news.
The multinational retail corporation reported earnings of USD1.77 per share, compared to the expected USD1.62 a share. Revenue amounted to USD152.86 Billion, higher than analysts anticipated USD150.81 Billion.
“We’re pleased to see more customers choosing Walmart during this inflationary period, and we’re working hard to support them as they prioritize their spending. The actions we’ve taken to improve inventory levels in the U.S., along with a heavier mix of sales in grocery put pressure on profit margin for Q2 and our outlook for the year. We made good progress throughout the quarter operationally to improve costs in our supply chain, and that work is ongoing. We continue to build on our strategy to expand our digital businesses, including the continued strength we see in our international markets,” said President and CEO, Doug McMillon.
Same-store sales for the company’s U.S. businesses grew 6.5% within the period. According to StreetAccount, this was higher than the 5.9% growth that analysts had predicted. McMillion said that cutting prices on products besides food had helped sell excess inventory, despite the move putting pressure on profit.
“We expect inflation to continue to influence the choices that families make, and we’re adjusting to that reality so we can help them more,” McMillon told analysts on a call with investors. “Regardless of the inflation level and as we work through the places we have too much inventory, we continue to make progress on our strategy.”