Walmart earnings beat expectations after sales grew more than 8%, but profits tightened in the fiscal second quarter, the company announced.
Last month the retail giant adjusted its profit outlook, warning that inflationary pressures was forcing consumers to cut discretionary purchases. Walmart now expects fiscal 2023 adjusted earnings per share will decline between 9% and 11% for the full year.
“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,” CEO Doug McMillon told analysts on a conference call on Tuesday. “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.”
Shares rose more than 5% in early morning trading.
After announcing cut prices from non-essential goods to bigger items due to an excess of inventory, now the company offered a better picture for consumer spending.
Walmart expects same-store sales for Walmart U.S. to grow by about 3%, excluding fuel, for the second half of the year, or about 4% for the full year.
E-commerce sales rose 12% compared with the year-ago period and 18% on a two-year basis.