The world’s largest supermarket group, American Walmart, increased its full-year profit forecast on the back of a good second quarter.
Strong performance in home territory
Over the past quarter (which ended in July), Walmart took full advantage of its stronger American sales, where turnover grew 1.6 % (in stores that have been around for more than 1 year). Analysts had estimated a 1 % growth, but Bloomberg believes Walmart managed to boost its sales in such a way that it stole back market share from the competition in its important home territory.
In the past quarter, the supermarket chain’s net profit reached nearly 3.8 billion dollars (3.3 billion euro, up nearly 8.6 %). Its group turnover grew 0.5 % to 120.85 billion dollars (nearly 105 billion euro), which is also better than what analysts had expected, namely 120.37 billion dollars.
CEO Doug McMillon had several reasons for the improved results: it remodeled plenty of stores, its customer service improved and its prices were even more competitive, which all drew in more customers. The company also invested a lot in its online channels: it purchased Amazon competitor and eCommerce company Jet.com for 3.3 billion dollars.
For its full fiscal year, Walmart forecasts a 4.15 to 4.3 dollar profit per share, with the previous range at 4 to 4.3 dollars profit per share.
