The raised guidance comes despite the U.S’ inflationary climate, and may inspire confidence in investors
Shares of big-box store chain Walmart (NYSE:WMT) caught a bid early Tuesday morning when traders cheered the retailer’s results and forward guidance for the third quarter of fiscal 2025.
The retail giant reported revenue of $169.6 billion, up 5.5% year over year, and now expects full-year FY2025 sales growth of 4.8% to 5.1%.
Following the market reaction on Tuesday, Walmart shares are now up 60% year to date.
Among the Q3 financial results, most noteworthy were Walmart’s 27% rise in Global eCommerce sales and 28% increase in the company’s global advertising business.
Furthermore, Walmart disclosed adjusted earnings of $0.58 per share, beating the consensus forecast of $0.53 per share. Additionally, the company’s consolidated gross margin rate grew 21 basis points (bps), “led by Walmart U.S.”.
The company also beat the analysts’ consensus estimate of $167.7 billion in sales.
Walmart’s guidance hike is particularly meaningful because the retailer is gearing up for its annual multi-day Black Friday shopping event.
Walmart’s raised outlook lifts holiday-season hopes
For Walmart’s wary investors, the retailer’s fiscal 2025 sales guidance hike may offer some holiday-season cheer. Currently, Walmart’s management envisions full-year consolidated net sales growth of 4.8% to 5.1%, as compared to the company’s previous guidance range of 3.75% to 4.75%.
Moreover, Walmart raised its FY2025 adjusted EPS outlook range to $2.42 to $2.47. Previously, the company’s management guided for full-year adjusted earnings of $2.35 and $2.43 per share.
Walmart’s management remains confident in the American consumer irrespective of external events, such as October’s 2.6% consumer price inflation uptick.
“The majority of our customers are maintaining their holiday plans year over year amidst the election, the calendar shift, the economic backdrop,” the company said in a statement.
