Walmart Profits Rise On Strong Sales From Wealthier Shoppers

New York, (APP - UrduPoint / Pakistan Point News - 16th May, 2024) Walmart reported higher profits Thursday behind solid gains at US stores as the retail giant pointed to increased purchases by wealthier shoppers and an uptick in e-commerce sales.

Profits more than tripled to $5.1 billion for the quarter ending April 30 on a six-percent rise in revenues to $161.5 billion. Earnings in the 2023 period were dented by exceptional losses in equity investments.

Walmart's gains with wealthier customers reflect marketing efforts to broaden its consumer profile and come against an inflationary backdrop that has prompted bargain-hunting.

The company has also invested heavily in e-commerce, which can be accessed by in-store pickup or through delivery benefits under a subscription program intended to rival Amazon's "Prime" membership.

"Our team delivered a great quarter," said Chief Executive Officer Doug McMillon in a press release. "Around the world our goal is simple -- we're focused on saving our customers both money and time."

Comparable sales in US stores rose 3.8 percent in the quarter, down from 7.4 percent in the 2023 period but still a solid level.

Walmart maintained many of its full-year projections, but said sales and operating income were on track to be at the high end or slightly above the original forecast.

Shares rose 5.5 percent in pre-market trading.