By ANNE D’INNOCENZIO, AP Retail Writer
NEW YORK (AP) — Walmart delivered another standout quarter as the promise of lower prices drew in a broader spectrum of Americans during the critical holiday shopping period, including wealthier households.
The outlook from the Bentonville, Arkansas, company, however, hinted at a volatile economic environment ahead on Thursday.
Shares dipped almost 3% before the opening bell.
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Last year, the company reported net income of $5.25 billion, or 65 cents per share.
Sales rose 5.6% to $190.7 billion, from $180.6 billion, also edging out expectations.
Comparable sales at Walmart stores, including online sales, rose 4.6% after a 4.5% increase in the previous quarter.
Global e-commerce sales rose 24%.
It is the first quarter time in more than a decade that the retail giant is reporting quarterly earning under a new chief executive.
John Furner, 51, who headed the company’s U.S. operations, took over for Doug McMillon this month. McMillon had turned America’s largest retailer into a tech-powered giant and spearheaded an era of robust sales growth after being named Walmart’s CEO in 2014.
Walmart’s shares rose more than 25% since its last quarterly earnings report and earlier this month it became the first non-tech company to reach a valuation of more than a $1 trillion.
It has done so with many Americans carefully considering where they spend money because of inflation and how the company performs is considered a barometer of consumer spending given its vast customer base. More than 150 million customers are on its website or in its stores every week, according to Walmart.
While inflation has cooled, consumer prices have soared about 25% over the past five years. Many economists expect more companies will begin passing on higher costs from higher U.S. tariffs to their customers in coming months.
Walmart’s promise of lower prices has broadened its base to include wealthier shoppers in that environment, with the biggest gains in market share coming from households with annual income over $100,000.
Walmart has managed higher costs both by shifting what it offers on store shelves while absorbing some higher costs.
The company said that for the current quarter, it expects sales to increase anywhere from 3.5% to 4.5% and earnings per share to be in the range of 63 cents to 65 cents. For the year, it expects sales to reach $706.4 billion and earnings per share to be $2.64.
That is a little cooler than Wall Street had been projecting. Analysts polled by FactSet had been expecting per-share earnings of 68 cents in the first quarter. For the year, they have been projecting earnings of $2.64 per share on sales of $712.6 billion
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