Walmart raised its full-year forecast on Thursday following the release of its fiscal results for the first quarter. Shares in the company rose during premarket trading as the retailer beat earnings and revenue forecasts.
Sales rose by almost 8% over the first quarter; a figure that gave Walmart the confidence to project a 3.5% rise in consolidated net sales for the entire fiscal year. Earnings per share stood at $1.47, beating Wall Street estimates of $1.32 per share. According to data from Infinitiv, Walmart’s adjusted earnings per share for the full year are expected to be between $6.10 and $6.20.
Chief Financial Officer John David Rainey expressed satisfaction with regard to consumer resilience during tough financial times. He explained that many are making alternative purchase arrangements, such as buying smaller pack sizes of the same items and purchasing luxury items such as TVs only when there is a promotion.
“We’re seeing in these economic indicators that there is some strain on the consumer, but the resilience has surprised us,” Rainey reflected. And I think that’s in part probably because balance sheets are much stronger than they were pre-pandemic, even at this point.”