Walmart sales rise as consumers look to stretch their dollar amid high inflation
Global News
Amid high inflation, investors have been nervously eyeing how consumer spending pans out during the holiday season, when retailers make more than a third of their annual profits.
Walmart Inc on Tuesday lifted its annual sales and profit forecast as demand for groceries holds up despite higher prices, while discounts on clothing and electronics helped it cut back excess inventories ahead of the busy holiday season.
The company also raised its full-year net sales expectations ahead of the holiday season and announced a new $20-billion share buyback plan, pushing its shares up 7.3 per cent in premarket trading.
Its results boosted stocks of other major retailers, including Target Corp and Macy’s Inc.
Amid persistent inflation, investors have been nervously eyeing how consumer spending pans out during the crucial holiday season, when retailers make more than a third of their annual profits.
“In this period of macroeconomic uncertainty, we believe that we are well equipped to continue gaining market share in an environment where consumers need to stretch their dollars further,” Chief Financial Officer John David Rainey said on an investor call.
The world’s largest retailer by sales forecast holiday quarter U.S. same-store sales, excluding fuel, to increase about 3 per cent, below estimates of a 3.4 per cent increase.
Rainey said the guidance assumes that consumers could slow spending, especially in general merchandise categories, due to continued rising costs for food.
The company’s comments follow those of FedEx and Amazon, which have also warned of muted holiday season demand in recent weeks.
Prince William expressed his shock and sadness Saturday at the news of the death of his former nanny’s stepson in the New Year's truck attack in New Orleans that killed 14 people.
South Korean investigators again asked the country's acting president to order the presidential security service to comply with an arrest warrant for the impeached president.
South Korean investigators left the official residence of impeached President Yoon Suk Yeol after a near-six-hour standoff during which he defied their attempt to detain him.
The blowback comes after Ottawa sanctioned eight Chinese officials it accuses of "grave human rights violations" against ethnic and religious minorities.
A Seoul court issued a warrant for Yoon’s detention after he evaded multiple requests to appear for questioning and blocked searches of his office in Seoul.
An armed man killed at least four people and wounded four others on Wednesday in the western Montenegrin city of Cetinje, police and local media said.
Israeli strikes killed at least 12 Palestinians in the Gaza Strip, mostly women and children, officials said Wednesday, as the nearly 15-month conflict ground on into the new year.
Revellers across Germany traditionally ring in the new year setting off fireworks, but the latest celebrations were marred by the use of fireworks against emergency officials.
Ukraine on Wednesday halted Russian gas supplies to European customers through its pipeline network after a prewar transit deal expired at the end of last year.
Auckland became the first major city to celebrate, as thousands thronged downtown or climbed the city’s ring of volcanic peaks for a fireworks vantage point.