Walmart lifts earnings outlook after revenues rise

The US retail giant Walmart reported a rise in revenues on Thursday on increased e-commerce and advertising sales, and raised its outlook for the year.

Given its vast size and presence across the United States, Walmart's earnings are closely scrutinized for signs of the broader health of US consumers.

Its strong sales in the US for the second quarter of the year suggest that consumers, still contending with a post-pandemic rise in the cost of many household items, are choosing to shop at Walmart over more expensive grocery stores.

"So far we aren't experiencing a weaker consumer overall," Walmart chief executive Doug McMillon said during an earnings call before markets opened.

"Customers from all income levels are looking for value, and we have it," he added.

Walmart's revenues rose 4.8 percent to $169.3 billion in the second quarter from the same period a year earlier, it said in a statement.

Profits fell 43 percent, largely explained by an unusual rise in the share price of several Walmart-backed companies during the same period last year. Operating income rose 8.5 percent -- a sign its core business is doing well.

The results beat analyst estimates, causing it to raise its outlook for the year. Shares surged close to seven percent in premarket trading.

"We are not seeing signs of customer fraying," Walmart said in a statement Wednesday.

"Customers continue to be choiceful & discerning," it continued, adding that every part of its business had grown.

Walmart's said its global e-commerce sales grew 21 percent in the second quarter, "led by store fulfilled pickup & delivery and marketplace."

Meanwhile, its global advertising business grew 30 percent, fueled by a 30 percent rise in its Walmart Connect business in the US.