NEW YORK (AP) — Walmart on Tuesday reported strong sales during the holiday season as budget-conscious consumers looking for better deals on groceries and other items flocked to its stores.
The report was a good showing for the company, considering consumers had cut back on their overall spending during the traditional November-December shopping period. Though sales rebounded at stores and restaurants last month, showing shoppers are still spending despite higher prices and several interest rate hikes by the Federal Reserve in an effort to curb the problem.
The nation’s largest retailer also delivered full-year sales of $611.3 billion, up 6.7% compared to the prior year. But it gave cautious guidance for the next fiscal year, saying it expects sales to increase between 2.5% to 3% and U.S. sales to jump 2% to 2.5%. And it forecast adjusted earnings per share ranging from $5.90 to $6.05, excluding fuel. Analysts surveyed by FactSet forecast $6.52 per share, on average. Shares rose less than 1% in early morning trading.
Also on Tuesday, Home Depot posted strong profits in its final quarter of 2022, but a muted outlook for this year sank its shares before markets opened. Amazon, which reported strong fourth quarter sales earlier this month, has also warned about a slower growth period for the coming months.
Walmart executives told analysts on a call that their guidance reflects the unknowns in the economy as consumers face rising interest rates, delinquencies and are putting less money in their savings.