Walmart is set to release its fiscal third-quarter earnings before the bell on Tuesday, providing key insights into the company’s performance as retailers enter the critical holiday shopping period, CNBC reports.
Investors are keen to gauge consumer sentiment and assess the retailer’s outlook for the rest of the year.
Analysts surveyed by LSEG expect Walmart to report earnings per share of 53 cents and revenues of $167.72 billion. This report will offer a snapshot of Walmart’s sales results and its read on the US consumer at a time when the holiday season is expected to see modest growth in spending.
The National Retail Federation (NRF) forecasts holiday spending to increase by 2.5% to 3.5% this year compared to 2023, with total spending projected to reach between $979.5 billion and $989 billion. While this marks a smaller increase than last year’s 3.9% growth, it still reflects solid consumer confidence.
For Walmart, the situation is shaped by a combination of factors. Inflation has eased, particularly with falling gas prices and more moderate grocery inflation. However, concerns over potential tariff hikes under President-elect Donald Trump’s administration have created new worries about rising prices. Additionally, a shorter holiday season and unusually warm weather in some parts of the US could impact retail sales.
Walmart has benefitted from its significant grocery business and the continued growth of its online sales. In August, the retailer raised its full-year sales forecast, projecting growth of 3.75% to 4.75% for the year and adjusted earnings per share between $2.35 and $2.43. Despite this optimistic outlook, Walmart’s adjusted earnings forecast for the third quarter of between 51 and 52 cents per share fell slightly below analysts’ expectations at the time.
