Walmart raised its full-year earnings forecast on Tuesday and beat estimates for same-store sales as it benefited from additional stimulus checks that put more money in consumers’ pockets and boosted demand for apparel and electronics.
Sales at US stores open at least a year rose 6 percent, excluding fuel, in the first quarter ended April 30. Analysts had estimated growth of 0.86 percent, according to IBES data from Refinitiv.
“Our optimism is higher than it was at the beginning of the year. In the US, customers clearly want to get out and shop … We anticipate continued pent-up demand throughout 2021,” Chief Executive Doug McMillon said.
Online sales lost some momentum, rising 37 percent, compared with a surge of 74 percent in the year-earlier period and 69 percent in the prior quarter.
Walmart said it now expects fiscal 2022 earnings to increase in high single digits, while previously the company had forecast a slight drop in profit for the year.
Increased clothing sales were key in Walmart’s impressive first quarter.Corbis via Getty Images
Operating income rose 32.3 percent to $6.91 billion in the quarter, while adjusted earnings was $1.69 per share.
Shares of Walmart were up 2.2 percent, to 141.96, in
