Walmart reported better-than-expected sales for the latest quarter. Both customer transactions and the amount spent per order were higher than in the same period last year.
Profits came in at $4.5 billion, which is actually less than the $7.9 billion of the previous year. However, this is still better than analysts’ forecasts. Sales were also higher than expected, rising by almost 5% to $169.33 billion.
The company’s financials are expected to look even better in fiscal year 2025. Walmart is forecasting an increase in net sales of 3.75 to 4.75 percent and adjusted earnings per share of between $2.35 and $2.43. Previous expectations were for a sales increase of 3 to 4 percent and earnings per share of $2.23 to $2.37.
Even as food and housing costs remain relatively high, consumers are again starting to open their wallets for more than the bare necessities. Walmart saw a slight uptick in convenience items like electronics, which had remained relatively consistent over the past few years. Shoppers are also spending money on general merchandise like lawn and garden supplies, with sales reaching positive numbers for the first time in the past 11 quarters.
“In this environment, it is responsible or prudent to be somewhat cautious on the outlook, but we are not forecasting a recession,” Chief Financial Officer John David Rainey said, according to CNBC.
Second-quarter comparable sales exceeded previous estimates, increasing 4.2% year over year. Overall e-commerce sales increased 21%.
Walmart customers in the U.S. spent 0.6% more per purchase and total transactions increased 3.6% year over year. Rainey said the increase in purchases and transactions was fueled by 7,200 “drops” and price reductions on numerous grocery items.
While consumers appear to be happier about spending money, other major retailers are not benefiting. Earlier this week, Home Depot announced a likely decline in annual profit as consumers spend less money on home improvements.
