Shopping
Walmart earnings: Retailer projects fruitful holiday shopping season, stock jumps again
Shoppers’ interest in value and convenience, including deliveries, helped drive higher than expected sales at Walmart from August to October. Sales are forecast to increase the rest of 2024.
Will Retailers Bring in Fewer Goods This Holiday Season?
Import data is revealing a decline in holiday product shipments with retailers like Walmart reducing their imports.
Cheddar
Walmart increased sales more than 5% during late summer and early fall as upper-income households shopped more at the world’s largest retailer and were more likely to pay for quick deliveries.
The Bentonville, Arkansas-based company also raised its sales and forecast for the fiscal year annual sales, a positive sign for Walmart with the arrival of the holiday shopping season.
Consolidated revenue during the company’s third quarter (Aug.-Oct. 2024) totaled $169.6 billion, up 5.5% over the same three-month period a year ago.
Walmart sales in the U.S. rose 5.3%, higher than the 3.73% that analysts were expecting, according to Bloomberg. Sales at Sam’s Club locations across the U.S. were up 7% over a year ago, the company said.
Walmart stock rises on open Tuesday
Walmart shares rose 3% when the market opened. Shares are up nearly 60% so far this year.
Positive outlook for holiday season
The retailer, which serves as a bellwether for the upcoming holiday shopping season, expects continued higher sales. To that end, Walmart increased its forecast for the full fiscal year, which ends in Jan. 31, 2025, forecasting a sales increase of 4.8% to 5.1%.
With a shorter holiday season than usual – six fewer days between Thanksgiving and Christmas – Walmart and competitors including Amazon and Target began the shopping season earlier with Black Friday events starting earlier this month.
E-commerce sales including store-fulfilled pickup & delivery rose 22% at Walmart and 26% at Sam’s Club in the U.S., the company said.Households making $100,000 or more made up 75% of Walmart’s share gains, president and CEO Doug McMillon said during a conference calls with investment analysts on Tuesday morning. “Becoming more convenient for our customers and members is helping drive our growth,” he said.
“Everybody wants to save money and everybody wants to save time,” McMillon said. “Those who have more discretionary income … are liking what we are doing.”
As shoppers’ concern about inflation grew, Walmart made an effort to provide consumers value, eMarketer analyst Blake Droesch told USA TODAY in a statement. “They positioned Walmart+ as a product for consumers to save money shopping both in-store and online, which has boosted membership revenue, ecommerce sales, and benefits its growing ad business,” he said.
Contributing: Reuters.
Follow Mike Snider on X and Threads: @mikesnider & mikegsnider.
What’s everyone talking about? Sign up for our trending newsletter to get the latest news of the day
Detroit Tigers reach new TV deal with Diamond Sports Group
OSU Names New Human Performance Innovation Complex to Honor Alum, Fitness Pioneer Pickens
RSM Classic betting guide: 5 picks our gambling expert loves this week
Online Gambling Market to Grow by USD 181.47 Billion (2024-2028), Fueled by Digital Tech Adoption, with AI Driving Market Transformation – Technavio
Weather Muddies Small Business Outlook
Female-owned The W Sports bar in the works for Cleveland
Hundreds of luminaries will light up this Lakeshore town’s Window Wonderland shopping night
The World’s Freshwater Resources Drop to Troubling Low
These Fashion Finds Are Insanely Stylish—and Ring In for Less Than $300
