Walmart Inc (NYSE:WMT) raised its guidance for the second quarter in a row after reporting revenue and earnings above expectations.
The Bentonville, Arkansas-based firm said the increase reflected "Q2 upside, confidence in continued business momentum and ongoing customer response to its value proposition".
For the three months to July 31, 2023, the flagship retailer reported revenue rose 5.7% to $161.6 billion from $152.9 billion the year before, ahead of forecasts of $160.27 billion, while adjusted EPS rose 4% to $1.84 from $1.77, compared to the $1.71 consensus.
In Walmart US, the eCommerce segment saw growth of 24% in the second quarter, while Walmart Connect advertising sales grew 36%.
The firm added that strong sales had been led by grocery, as well as health and wellness, even as general merchandise sales declined modestly.
Doug McMillon president and chief executive said: "We had another strong quarter," adding, "food is a strength, but we’re also encouraged by our results in general merchandise versus our expectations when we started the quarter."
Gross margin rose 50 basis points on "lapping elevated markdowns and supply chain costs, partially offset by ongoing mix pressure
in grocery and health & wellness", the firm said in a statement.
Looking ahead, Walmart said it expects consolidated net sales to increase 3.0% in the third quarter, and consolidated operating income to rise 1.0%. Adjusted EPS are expected between $1.45-1.50.
For financial year 2024, Walmart now anticipates that consolidated net sales will rise between 4.0% and 4.5%, with consolidated operating income increasing between 7.0% and 7.5%. Adjusted EPS are expected between $6.36-6.46.
Shares rose 1.2% in pre-market trading and have risen 11% year-to-date.