Walmart’s (WMT) shares are down 7% after the world’s largest retailer gave a cautious outlook for the current quarter and holiday shopping season.
Walmart’s third-quarter financial results topped Wall Street forecasts, with the company reporting earnings per share of $1.53 U.S. versus $1.52 U.S. that was expected.
Revenue in the quarter came in at $160.80 billion U.S. compared to $159.72 billion U.S. that was anticipated.
Walmart said that its finances continue to get a lift from its grocery business, which has thrived during a period of high inflation. Digital sales channels also remain a bright spot.
In the U.S., Walmart’s customer transactions during Q3 rose 3.4% and the average ticket price grew 1.5%. E-commerce sales increased 24% year-over-year.
However, despite the strong Q3 results, Walmart provided a cautious outlook, saying consumer spending is weakening heading into the year-end holidays.
The company now expects earnings per share of $6.40 U.S. to $6.48 U.S. for all of this year, which is below the $6.48 U.S. that analysts had expected.
Walmart added that it expects consolidated net sales to rise between 5% and 5.50% for all of 2023.
Prior to today (Nov. 16), the stock of Walmart had increased 18% this year and was trading at an all-time high of $169.78 U.S. per share.