Walmart defies spending slowdown, hikes outlook ahead of holidays as it plans NYSE exit

Walmart on Thursday raised its annual forecasts for the second time this year after another strong quarter led by surging online sales, in a signal of confidence headed into the holiday season.Shares rose 5.9% in early trading after it bumped up its annual net sales forecast to between 4.8% and 5.1%, up from a prior target of 3.75% to 4.75%.It also lifted its adjusted earnings per share outlook to $2.58 to $2.63, compared with $2.52 to $2.62 previously, and said it will shift its stock listing to the Nasdaq from the NYSE.“Holiday is off to pretty good start,” Chief Financial Officer John David Rainey said on a post-earnings call, pointing to strong Halloween and early Thanksgiving sales.He said the company remains optimistic about shoppers leaning into seasonal holiday events, though some moderation persists, and expects fourth‑quarter trends to be broadly in line with earlier quarters.US comparable sales, which combines online and store sales, rose 4.5% in the August through October period, topping estimates of 3.8% growth, according to LSEG.Online sales were a bright spot, climbing 28%, driven by groceries.

Gains came across income brackets, though upper‑income households once again led the way, Walmart said.Wealthier consumers are cashing in on the convenience of faster deliveries, and Walmart said its “expedited deliveries,” which aim to happen under three hours, rose 70% in the quarter.Overall, US e‑commerce marked its seventh consecutive quarter of growth above 20%, the company noted in a presentation.The company also saw strength in discretionary categories, such as apparel and home “hardlines” like furniture, again driven by higher‑income households.Spending among lower‑income households moderated, Rainey said, noting that, as of October, the gap in wage growth between income groups was the widest it has been in nearly a decade.US households, particularly low- and middle-income earners, have been under mounting fin...