The Clap
Walmart’s (NYSE: WMT) reported earnings per share of $1.77 and revenues of $152.86 billion for Q2 2022, beating analysts’ estimates.
The Deets
Walmart’s sales of groceries and essential items increased as consumers are prioritizing needs over discretionary goods due to inflation.
In addition to that, Walmart expects this spending pattern to continue throughout the year as even higher-income families began shopping at their stores and website.
Consumers are beginning to sacrifice high quality for more budget-friendly goods as the economy continues to put pressure on these households. Walmart is also trying to clear out excess inventory by selling at discounted prices to clear out for the holiday season.
Why this Matters
Walmart’s stock price went up by around 5% following the report. Walmart’s news also pushed rivals Target’s stock price up, as investors expect a similar strategy and stance.
Walmart overcomes economic pressures in Q2 2022 💪
