Sarah Nassauer of The Wall Street Journal reports that Walmart’s sales rose in the latest quarter, helped by demand for toys and other goods. Nassauer writes:
Walmart said U.S. sales rose during the most recent quarter, propelled by shoppers buying groceries, home goods and toys—a sign that spending is off to a steady start this holiday season. The retail giant raised its sales and profit estimates for the year.
The results were better than analysts expected, and Walmart shares rose about 3% in Tuesday’s trading. Walmart executives said they are watching potential policy moves by the incoming Trump administration, particularly on import taxes. The retailer said it is importing some products early in case of new tariffs or potential port strikes in January.
Sales: U.S. comparable sales, those from stores and digital channels in operation for at least 12 months, rose 5.3% for the quarter ended Oct. 25, driven by broad demand for its goods and market share gains across economic groups, including higher-income households. Analysts were expecting about 3.9% growth, according to FactSet. […]
Holiday sales are expected to increase slightly this year compared with last, according to estimates from the National Retail Federation and consultants that track seasonal sales. Earlier this month, Amazon said that revenue grew 11% from a year earlier, beating Wall Street’s targets. Executives said demand for everyday essentials lifted sales. […]
Walmart raised its forecast for comparable sales growth for its fiscal year and for adjusted earnings. Executives now expect comparable sales growth of 4.8% to 5.1% for the year, up from its prior forecast of 3.75% to 4.75%. They said most customers are sticking with their holiday spending plans despite any concerns about the election and economic outlook.
Tariffs implemented during President Trump’s first term and maintained by President Biden have been a factor for the last seven years, Rainey said, but any new tariffs would raise prices, “so we would rather not have that.”
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