Walmart Lifts Forecast as Shoppers Increase Spending Beyond Groceries
Walmart Inc. raised its annual outlook again on Thursday, as shoppers boosted spending outside the grocery aisles.
The big-box retailer reported strong results for the fourth quarter and said it expects comparable sales to grow between 2.5% and 3% in fiscal 2024 excluding fuel.
That is up from its previous guidance of 2% to 3% and reflects continued strength in categories such as apparel, home and beauty.
Walmart also said it now expects earnings per share to be between $6.25 and $6.35, up from its previous guidance of $6.10 to $6.20.
The results come as Walmart benefits from shoppers trading down to cheaper retailers amid high inflation.
The company has also been investing in its e-commerce business, which helped drive online sales growth of 17% in the fourth quarter.
Walmart's strong results are a sign that consumers are still spending, despite concerns about the economy.
The company's low prices and wide selection of products are likely to continue to attract shoppers in the coming months.
A Deeper Dive into Walmart's Strong Performance
Walmart's strong performance in the fourth quarter was driven by several factors, including:
- Increased spending in non-grocery categories such as apparel, home and beauty
- Continued strength in its e-commerce business
- Benefits from shoppers trading down to cheaper retailers amid high inflation
Walmart's comparable sales growth of 8.3% in the fourth quarter was its strongest in nearly a decade.
The company's e-commerce business also continued to grow rapidly, with online sales increasing by 17% in the fourth quarter.
Walmart's strong performance is a sign that consumers are still spending, despite concerns about the economy.
The company's low prices and wide selection of products are likely to continue to attract shoppers in the coming months.
What Walmart's Strong Performance Means for Investors
Walmart's strong performance is good news for investors.
The company's raised outlook and strong results in the fourth quarter indicate that it is well-positioned to continue to grow in the coming months.
Walmart's stock has outperformed the broader market in recent months, and it is likely to continue to do so as the company benefits from continued strength in consumer spending.
Investors should consider adding Walmart to their portfolios as a long-term investment.
Conclusion
Walmart is a well-positioned company that is likely to continue to grow in the coming months.
The company's strong performance in the fourth quarter and its raised outlook are positive signs for investors.
Investors should consider adding Walmart to their portfolios as a long-term investment.
