Walmart raised its financial outlook for the year after beating Wall Street’s expectations for the quarter and seeing the strongest growth in more than a decade in sales at established stores. Its shares rose nearly 10 percent.
Walmart said sales were strong across many categories but the grocery business was notable with sales rising the most in nine years, fueled by fresh items like meat and produce. But it warned that trade wars between China and the U.S. could dampen consumer confidence in the second half of the year, the busiest time for retail. Walmart said that it’s using its scale to mitigate tariff effects.
It’s also working to speed up delivery to compete better with Amazon and is expanding same-day grocery delivery.
Walmart has been refocusing on areas with big growth potentials like India and China. In May, it acquired a controlling stake in Flipkart, India’s largest online retailer, for $16 billion in its biggest acquisition yet.
Revenue came to $128.03 billion, also beating projections.
Walmart now expects earnings for the current fiscal year of $4.90 to $5.05 per share, excluding charges related to Flipkart. Analysts expected $4.78 per share, according to FactSet.