Walmart (WMT) is set to report another solid quarter even as cautious consumers become more discerning with their dollars.
For its fiscal 2025 Q2, America’s biggest retailer is expected to see revenue growth of 4.23% to $168.46bn, while adjusted earnings per share are expected to jump 5.22% to $0.65.
US same-store sales are expected to increase 3.41%, with Sam’s Club up 3.9%, and its namesake business up 3.43%, according to Bloomberg estimates. Groceries remain a key business for Walmart, a major factor behind higher foot traffic and ticket size.
“Grocery, consumables, and essentials… will still be the key driver,” Joe Feldman of Telsey Advisory Group told Yahoo Finance over the phone. “People are seeking value, people are trying to stretch their dollars.”
UBS analyst Michael Lasser expects to hear the “consumer overall has been consistent.”
“Keep in mind that Walmart sells mostly groceries and other household products, and it’s taking market share, so what it has been experiencing is going to be a bit different than what other retailers have been experiencing,” Lasser told Yahoo Finance.
Groceries account for roughly 60% of Walmart’s US sales. This past quarter, it introduced a private label brand called Bettergoods, which offers healthier, higher-quality products at a $5 price point.