Walmart beats estimates for sales on stimulus spending boost, raises profit forecast

Walmart Inc raised its full-year earnings forecast on Tuesday and beat estimates for same-store sales as it benefited from additional stimulus checks that put more money in consumers` pockets and boosted demand for apparel and electronics.

After a bumper year, bolstered by a big push into e-commerce and delivery, Walmart continues to see soaring demand as increased vaccinations and the easing of restrictions bring more people back to its stores.

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"Our optimism is higher than it was at the beginning of the year. In the U.S., customers clearly want to get out and shop ... We anticipate continued pent-up demand throughout 2021," Chief Executive Officer Doug McMillon said in a statement.

Sales at U.S. stores open at least a year rose 6%, excluding fuel, in the first quarter ended April 30. Analysts had estimated growth of 0.86%, according to IBES data from Refinitiv.

Online sales lost some momentum, rising 37%, compared with a surge of 74% in the year-earlier period and 69% in the prior quarter.

Walmart said it now expects fiscal 2022 earnings to increase high single digits, while previously the company had forecast a slight decline in profit for the year.

Still, McMillon warned that the second half of the year would have more uncertainty than a typical one.

Operating income rose 32.3% to $6.91 billion in the quarter, while Walmart reported adjusted earnings of $1.69 per share.

Total revenue rose 2.7% to $138.31 billion.

Shares of the company were up nearly 1% in premarket trade.