Walmart (WMT) reported better-than-expected results for its fiscal second quarter on Thursday, as the retailer’s same-store sales grew faster than analysts predicted amid its push toward e-commerce, while raising the outlook for full-year earnings.
Revenue rose 1.8% to $130.4 billion, ahead of the Street’s expectation for $129.3 billion. US same-store sales rose 2.8%, topping analysts’ views for 2.48%. Adjusted earnings fell to $1.27 a share compared with $1.29 a year ago, but that also beat predictions for $1.22 a share.
“From a performance point of view, we’re pleased with the strength we see in the business,” said Doug McMillon, chief executive of the world’s biggest retailer. “Customers are responding to the improvements we’re making, the productivity loop is working, and we’re gaining market share.”
Shares rallied more than 5.7% in pre-market trading on Thursday.
US e-commerce sales increased 37% with “strong growth” in online grocery shopping, as the company said it has more than 2,700 pickup locations for the service and 1,100 delivery areas.
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For fiscal 2020, Walmart now sees consolidated net sales growth of “around 3%” in constant currency compared with a prior projection of “at least” 3%. Walmart US comparable sales are poised to grow “towards the upper-end” of the 2.5% to 3% range excluding fuel that it predicted previously.