Walmart beats sales, raises forecast as higher-income shoppers continue to flock to retail giant

Walmart (WMT) reported another strong quarter as its business proved resilient in the face of demanding consumers and persistent inflation.

In the second quarter, revenue rose 4.8% to $169.34 billion, compared with expectations of $168.46 billion. Adjusted profit also beat estimates at $0.67, up 9.8% from a year earlier.

“Every part of the business is growing,” CEO Doug McMillon said in the release. “Store and club sales are up, e-commerce is growing as we expand pickup, and delivery is growing even faster as our speed improves.”

He added that its online marketplace, membership model and advertising business (which grew 26% globally) have helped diversify the retailer’s profits.

U.S. comparable-store sales rose 4.3%, including a 4.2% increase at its namesake Walmart business and a 5.2% increase at Sam’s Club, according to Times of Update estimates.

Groceries remain a key business, a major factor behind the increase in foot traffic and ticket sizes.

“Groceries, consumer goods and staples … will continue to be the key drivers,” Joe Feldman of Telsey Advisory Group told Yahoo Finance by phone ahead of the earnings release. “People are looking for value, they’re trying to get the most bang for their buck.”

In Walmart’s U.S. segment, the company said it continued to gain market share across all income brackets, including high-income households, due to its “convenient value proposition.”

Groceries account for about 60% of Walmart’s U.S. sales. In the latest quarter, the company launched a private label brand called Best productswhich offers healthier, better quality products at a price of $5.

The retailer is looking to retain the high-income households it has won by making consumers think, “Hey, this isn’t the Walmart it was 10 or 15 years ago,” said CFRA analyst Arun Sundaram.

“Keep in mind that Walmart primarily sells groceries and other household products, and it’s taking market share, so what it experiences will be a little different than what other retailers experience,” UBS analyst Michael Lasser told Yahoo Finance.

Its international operations saw sales increase by 7.1%, thanks to an increase in the number of stores and its online activities.

Income distribution

Here’s what Walmart reported for the second quarter of its 2025 fiscal year, compared to Times of Update estimates:

Income: $169.34 billion vs. $168.46 billion

Adjusted earnings per share: $0.67 vs. $0.65

Overall US Same-Store Sales Growth: 4.30% versus 3.41%

Walmart US Store Sales Growth: 4.20% versus 3.43%

• Traffic: 3.60% versus 2.82%

• Ticket growth: 0.60% versus 1.27%

• Growth of e-commerce: 3.00% vs. 2.10%

The story continues

Sam’s Club U.S. Same-Store Sales Growth: 5.20% versus 3.90%

For fiscal 2025, Walmart now expects sales growth of 3.75% to 4.75%, with adjusted EPS of $2.35 to $2.43. This compares to previous guidance calling for net sales growth of 3% to 4% and adjusted EPS of $2.23 to $2.37.

Walmart shares…