Walmart lifts outlook ahead of holidays

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.

- JUVERIA TABASSUM SIDDHARTH CAVALE

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, including 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 straddled 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.