Investing.com – Walmart (NYSE:WMT) stock fell 1.2% in Tuesday’s premarket as the retailer’s second quarter earnings indicated a slowdown in growth after an exceptional, pandemic-distorted year..
The drop came despite the big-box retailer raising its guidance for the year after a quarter that was better than consensus forecasts expected.
Total revenue was up 2.4% at $141 billion, affected by disposals. It had grown 5.6% in the second quarter of 2020. Analysts estimated it to be $136.63 billion.
Sales at U.S. stores that have been open for at least a year rose 5.2%, coming well below the 9.3% growth in the June quarter of 2020, but still enough for management to raise its full-year forecast. However, Walmart's e-commerce sales slowed sharply, rising only 6% compared to 97% growth last time. International sales came in at $23 billion, down 15% from a year ago.
Adjusted earnings per share of $1.78 was higher than the estimated $1.56.
The company said it now expects U.S. same-store sales to be up 5% to 6% in the ongoing financial year, compared with the 'low single-digit growth' it had previously forecast.
Consolidated net revenue is seen growing 6%-7% as opposed to “low-to-mid single-digits” previously.
Walmart has been one of the biggest beneficiaries of stimulus checks, its vast bouquet of products and stores drawing people looking to get the best bang for their buck in the pandemic. That shopping frenzy could be history as people put the fear of lockdowns behind and return to more traditional spending habits.