In addition, the business launched a fresh 20 billion USD share repurchase program. In the face of ongoing inflation, investors have been watching with bated breath how consumer spending fared over the key holiday season, when retailers generate more than a third of their yearly profits.

The world's largest retailer by sales expects Christmas quarter U.S. same-store sales, excluding gasoline, to rise roughly 3%, falling short of expectations for a 3.4% growth. They stated that the guideline envisions a more promotional Christmas time and that customers may decrease spending, particularly in general retail categories, due to increased food costs. Walmart expects net sales to climb 5.5% for the entire year, up from a 4.5% gain previously projected.

Walmart also stated that it was better prepared in terms of inventories after many of the issues it had earlier this year. The company's inventory was up 13% at 65 billion USD on a value basis, which CFO Rainey said was 70% due to inflation, but were far lower on a unit basis. Walmart's excellent results demonstrate that its operating strategy works during periods of economic growth.

Movement of Walmart stocks in the last five years. (Source: Trading Economics)

Sources:

https://tradingeconomics.com/wmt:us

https://www.saltwire.com/atlantic-canada/business/walmart-lifts-annual-forecast-announces-20-billion-share-buyback-100795237/

https://finance.yahoo.com/news/walmart-lifts-annual-forecast-announces-120940577.html

https://www.reuters.com/article/walmart-results-idTRNIKBN2S5103

https://www.investing.com/news/stock-market-news/walmart-expects-smaller-drop-in-annual-profit-announces-20-billion-share-buyback-2944561