Wal-Mart Stores Inc. reported a 5.7 percent increase in second-quarter income Thursday morning, as cash-strapped consumers continue to flock toward value-priced goods.
As a result, the discount titan raised its full-year guidance to between $4.83 and $4.93 a share, from $4.72 to $4.92 a share. Wall Street is looking for EPS of $4.93.
For the period ended July 31, the Bentonville, Ark.-based retailer posted income of $4.02 billion, or $1.18 a diluted share, compared with year-ago income of 3.80 billion, or 1.09 a share.
Analysts were looking for $1.17 a share.
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Excluding membership fees from Sam’s Club, revenue increased 4.5 percent to $113.53 billion from $109.37 billion, a year earlier.
“Walmart had a strong second quarter, and I’m pleased with the earnings and overall results,” said Mike Duke, president and chief executive officer. “We had positive comp [comparable-store] sales in Walmart U.S. and Sam’s Club, as well as each of our international markets, reinforcing that customers rely on Walmart to help them save money and live better.”
Comps at Wal-Mart U.S. stores rose 2.2 percent, while at Sam’s Club, they increased 4.2 percent, excluding fuel sales.
“The paycheck cycle remains pronounced in the United States and in our International markets,” Duke added. “Given continuing economic pressures, we believe that our price leadership and value are growing in importance to customers across income levels.”