Walmart raises profit expectations as more Americans hunt deals in sluggish economy

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NEW YORK (AP) — Walmart delivered another standout quarter, posting strong sales and profits that blew past Wall Street expectations as it wins over more cash-strapped Americans who have grown increasing anxious about the economy.

With other retailers dialing back projections, the nation’s largest retailer raised its financial outlook Thursday after its strong third quarter, setting itself up for a strong holiday shopping season.

Walmart Inc., based in Bentonville, Arkansas, also said Thursday that it will be transferring the listing of its common stock to the tech-heavy Nasdaq from the New York Stock Exchange. It expects its common stock to begin trading on the Nasdaq Global Select Market on December 9, under the the same ticker symbol “WMT.”

CEO Doug McMillon, who surprised investors last week with plans to retire early next year, has reshaped Walmart itself as tech-powered retail giant that has leaned heavily into automation and artificial intelligence.

McMillon spearheaded a period of robust sales growth since becoming chief executive in 2014, going toe-to-toe with online behemoth Amazon. John Furner, 51, the head of Walmart’s U.S. operations, will take over on Feb. 1, the day after McMillon’s retirement becomes effective.

The leadership change arrives at a challenging time for U.S. companies that have spent months navigating an uncertain economic environment as President Donald Trump imposes wide-ranging tariffs on imports and pursues an immigration crackdown that threatens to shrink the number of workers available in America.

Walmart’s performance serves as a barometer of consumer spending given its size and vast customer base. The company maintains that 90% of U.S. households rely on Walmart for a range of products, and more than 150 million customers shop on its website or in its stores every week.

“We’re gaining market share, improving delivery speed, and managing inventory well, McMillon said in prepared remarks. “We’re well-positioned for a strong finish to the year and beyond that.”

That compares with a mixed performance from other retailers so far this quarter.

Target’s third-quarter profit tumbled as the retailer struggled to lure shoppers that are being pressed by stubbornly high inflation. The Minneapolis company said Wednesday that it expects its sales slump to extend through the critical holiday shopping season.

The most recent quarter is the latest challenge for incoming CEO Michael Fiddelke, a 20-year company veteran who is replacing CEO Brian Cornell in February.

Home Depot, which reported its third-quarter results on Tuesday, was mixed with fewer violent storms reaching shore, more anxiety among U.S. consumers and a housing market that is in a deep funk. The company lowered its fiscal 2025 adjusted earnings forecast but raised its expectations for sales growth.

TJX, which operates HomeGoods and TJ Maxx, continues to lure frugal shoppers. On Wednesday, it upgraded its full-year outlook and turned in higher profit and sales during the recent quarter.

Walmart, too, has been laser-focused on maintaining low prices while the company under McMillon deploys new technologies, from artificial intelligence to robotics. Walmart has also invested heavily in e-commerce and faster deliveries.

Walmart has also sought out new sources of revenue like advertising and launched a membership program called Walmart + to compete with Amazon Prime.

Those efforts have paid off.

Third-quarter profits rose to $6.14 billion, or 77 cents per share, in the quarter ended Oct. 31. Adjusted earnings were 66 cents, or 6 cents better than Wall Street had expected, according to a poll by FactSet. That is far greater than the $4.58 billion, or 57 cents per share, the company earned in the same period last year.

Sales rose nearly 6% to $179.5 billion, also exceeding the expectations of most analysts.

Comparable sales at Walmart stores — those from sales from established physical stores and online channels— rose 4.5% in the third quarter, just shy of last quarter’s 4.6%.

The number of transactions at Walmart stores rose 1.8%, while the average transaction size rose 2.7%.

Global e-commerce sales rose 27%. That follows a 25% jump in the second quarter and a 22% growth in the first quarter.

The company said that it now expects adjusted profits this year to be in the range of $2.58 to $2.63, up from guidance in August of between $2.52 and $2.62 per share.

Walmart expects sales for the year to be up anywhere from 4.8% to 5.1%. That’s up from its earlier estimates of 3.75% to 4.75%.

Analysts were predicting $2.61 per share, according to FactSet analysts.

Shares were essentially flat before the opening bell Thursday.