Walmart raises outlook as groceries boost sales, inventory glut recedes

by | Nov 15, 2022 | Business

Customers outside a Walmart store in Torrance, California, US, on Sunday, May 15, 2022. Walmart Inc. is scheduled to release earnings figures on May 17.Bing Guan | Bloomberg | Getty ImagesWalmart said Tuesday that sales rose by nearly 9% in the fiscal third quarter, as Americans across income levels bought the company’s low-priced groceries.The discounter beat Wall Street’s expectations for the quarter and raised its outlook to reflect that beat. Shares rose more than 6% in premarket trading.Here’s what Walmart reported for the three-month period ended Oct. 31, according to Refinitiv:Earnings per share: $1.50 adjusted vs. $1.32 expectedRevenue: $152.81 billion vs. $147.75 billion expectedWalmart posted a net loss of $1.8 billion, or 66 cents per share, down from a profit of $3.11 billion, or $1.11 per share, a year earlier.On an adjusted basis, the company reported earnings of $1.50 per share. The retailer, which also offers pharmacy services, recorded a charge of nearly $3.33 billion, or $1.05 a share, as part of opioid-related legal charges. It announced a nationwide settlement of $3.1 billion on Tuesday to resolve lawsuits and potential lawsuits by state, local and tribal governments.In a statement, Walmart said it “strongly disputes the allegations in these matters, and this settlement framework does not include any admission of liability.”‘Pocketbooks are stretched’Shoppers are watching how they spend, Walmart Chief Financial Officer John David Rainey said. They are buying less-expensive proteins such as hot dogs, beans and peanut butter instead of pricier meats. They are waiting for sales events to buy items like TVs and air fryers and are spending less in the apparel and home categories.”Pocketbooks are stretched,” he said. “People have less discretionary income or less disposable income to spend on things — and so they’re looking for value.”The discounter also made progress with an industry-wide headache: a …

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