Walmart sticks with second-half outlook after earnings beat expectations

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The retailer's profits are under pressure, as consumers feel pinched by inflation and buy fewer high-margin items, such as apparel and electronics.

Walmart topped analysts' expectations for earnings and revenue in the fiscal second quarter, even as consumers pulled back in discretionary categories like apparel.

Walmart reiterated its forecast for the back half of the year. It expects same-store sales for Walmart U.S. to grow by about 3%, excluding fuel, for the second half of the year, or about 4% for the full year. It anticipates adjusted earnings per share will decline between 9% and 11% for the full year.

He said Walmart also sees signs of a budget-strapped consumer who is trading down "in terms of quality and quantity." For example, he said, shoppers are increasingly using credit more than debit, he said. They are opting for smaller packages of food and buying items like canned tuna and beans instead of deli meats and beef.Here's what the company reported for the fiscal second quarter ended July 31, compared with Refinitiv consensus estimates:Revenue: $152.86 billion reported vs.

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