Walmart Boosts Outlook As Back-to School Sales Return

Walmart raised its sales outlook for the year as Americans returned to shopping for back to-school clothes and travel goods during the second quarter.

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Still, concerns are mounting over how shoppers will behave in the months ahead as the delta variant of COVID-19 surges across the U.S. and mask mandates are reinstated. On top of that, higher prices on everything from food to automobiles are making shoppers more conscious about spending. And temporary government stimulus and other benefits, which helped prop up overall spending, are dissipating.

Other major retailers are reporting quarterly results this week and next, and there is early evidence that behaviors that changed vastly during the pandemic, have begun to change again, or at least normalize.

Data from Home Depot, which also reported earnings, showed that traffic in stores fell a bit after a massive rush of DIY projects during lockdowns. At Walmart, the blistering growth in online orders has slowed drastically.

Also, the U.S. reported that retail sales in July fell a seasonal adjusted 1.1%. It was a much larger drop than the 0.3% decline Wall Street analysts had expected. According to report, spending fell at stores that sell clothing, furniture and sporting goods.