Walmart has updated its full-year forecast for the second time this year, reflecting a confident outlook as it heads into the holiday season. This comes after another strong quarter marked by a notable rise in online sales.
In early trading, shares climbed by 5.9% following the company’s decision to adjust its full-year net sales forecast to a range of 4.8% to 5.1%, up from an earlier expectation of 3.75% to 4.75%.
The retailer also increased its adjusted earnings per share forecast to a range of $2.58 to $2.63, compared to the previous $2.52 to $2.62. Additionally, Walmart announced it would transition its stock listing from the NYSE to the Nasdaq.
Same-store sales experienced a 4.5% increase, which surpassed expectations. Total revenue rose by 5.8%, reaching $179.5 billion. “We’re off to a pretty good start to the holiday season,” said Chief Financial Officer John David Rainey in a call with analysts, highlighting strong sales during Halloween and the early days of Thanksgiving.
While the company is optimistic that customers are gearing up for the holidays, there are indications of some moderation, and it anticipates that trends in the fourth quarter will likely resemble those from the previous quarter.
LSEG reported that U.S. comparable sales, which include both online and in-store purchases, grew by 4.5% from August to October, exceeding expectations of a 3.8% rise.
Online sales were particularly robust, jumping by 28%, largely driven by grocery purchases. Walmart noted that increases were spread across various income levels, but higher-income households were noticeably leading the pack.
Wealthy consumers seem to be enjoying the convenience of faster deliveries, with Walmart’s “rush deliveries,” aiming for delivery within three hours, surging by 70% over the quarter.
The company indicated that U.S. e-commerce has seen over two years of growth, consistently exceeding 20% each quarter.
Walmart also performed well in discretionary categories, such as clothing and furniture—again, with higher-income consumers driving this trend. Rainey commented that spending had decreased among lower-income households, noting a significant gap in wage growth across income levels—at its widest in almost a decade.
Economic challenges have put a lot of pressure on U.S. households, especially among lower- and middle-income earners, due to ongoing inflation and a sluggish job market. Added uncertainty regarding tariffs and the recent government shutdown hasn’t helped either.
Despite these conditions, Walmart’s stock has risen about 11% this year, significantly outpacing the S&P 500 Consumer Staples Index, which has dropped by 0.25%.
This challenging consumer environment appears to be reinforcing Walmart’s appeal as a destination for shoppers across income levels. In contrast, competitors like Lowe’s and Home Depot recently cut their annual targets, citing weak consumer demand, and Target also reported declines in sales.
Brian Hayes, a strategist at Zacks Investment Research, remarked that Walmart’s performance highlights the polarization within the retail market—larger, value-focused retailers are thriving by attracting a diverse clientele, while other discretionary brands like Target face difficulties.
Walmart’s third-quarter adjusted earnings were reported at 62 cents per share, surpassing Wall Street expectations by 2 cents. Total revenue increased by 5.8%, exceeding forecasts of $177.4 billion.
Listing Transition to NASDAQ
Walmart announced it will move its stock listing from the New York Stock Exchange to the Nasdaq on December 9, a decision indicative of its commitment to technology as a cornerstone of its growth strategy.
This timing coincides with the appointment of veteran executive John Farner as the new CEO, replacing Doug McMillon. The shift underscores Walmart’s focus on enhancing its technology-driven initiatives.
During the post-earnings call, company executives revealed that over 40% of Walmart’s recent software code is generated or assisted by AI.
A decade-long investment in automation has transformed Walmart’s U.S. distribution network; more than 60% of shipments now go through automated distribution centers, and over half of online orders are processed via automated systems.
Behind the scenes, Walmart leverages advanced technologies like Agentic AI to enhance catalog accuracy, identify inventory gaps, and assist customers in locating products more efficiently.
