Walmart has exceeded Wall Street’s expectations, raising its full-year forecast as it sees stable consumer health, particularly in the first half of the year. The retailer reported a 5% increase in quarterly revenue, driven by higher store and online visits, and a notable rise in non-grocery sales. Despite this strong performance, Walmart remains cautious about the second half of the year due to potential economic uncertainties, including the 2024 election and unrest in the Middle East.
Walmart’s U.S. e-commerce sales jumped 22%, and overall transactions increased by 3.6% compared to the previous year. While the company observed stable consumer behavior, with spending focused on essentials, it also noted a positive shift in general merchandise sales for the first time in 11 quarters. Walmart continues to push for price reductions from vendors, with inflation remaining flat year-over-year. The company’s stock has risen nearly 31% this year, significantly outpacing the S&P 500. Despite the cautious outlook for the latter half of the year, Walmart’s strong performance and strategic moves have reinforced its position as a key indicator of consumer health and economic trends.
