Walmart Inc raised its full-year forecasts and beat estimates for second-quarter sales, underscoring its strength in offering lower prices on everything from daily perishables and clothes to inflation-squeezed Americans.
Walmart is also benefiting from lower supply-chain costs and fewer discounts that were previously put in place to cut down excess inventory.
"We're in good shape with inventory, and we like our position for the back half of the year," McMillon said.
Smaller rival Target beat quarterly profit estimates, benefiting from leaner inventory.
Walmart said gross margin rate in the second quarter rose 50 basis points, compared to an 18 basis point decline in the first quarter.
The retail behemoth now expects fiscal 2024 earnings to be in the range of $6.36 per share to $6.46 per share, compared to the prior forecast of $6.10 to $6.20. Analysts on average were estimating $6.28 per share, according to Refinitiv IBES data.
The company also forecast net sales to increase about 4% to 4.5%, compared to an about 3.5% rise expected previously.
In contrast, Target cut its full-year forecasts.
Walmart's operating income rose 6.7% to $7.32 billion in the quarter, while it reported adjusted earnings per share of $1.84.