Walmart Inc has raised its FY24 guidance after reporting an increase in both revenue and operating income for the second quarter ended July 31.

The company’s consolidated revenue reached $161.6 billion, up 5.7 per cent while operating income grew 6.7 per cent.

Walmart’s US business saw sales rise by 5.4 per cent on an overall basis and by 6.4 per cent in comparable terms. 

For the full year, the company expects a 4 to 4.5 per cent increase in consolidated net sales and 7 to 7.5 per cent growth in operating income.

“Even as other retailers are suffering, Walmart continues to shine with another set of strong numbers,” commented Neil Saunders, MD of GlobalData.

Despite inflation and challenging economic finances, Walmart’s ongoing improvements to its range and shopping experience have made shoppers stick around.

“There is a question mark over whether newly converted customers will stay with the chain if and when inflation moderates, or the economy strengthens,” Saunders continued, adding he errs on the side of optimism for two reasons.

“First, we don’t think that food prices are going to drop steeply any time soon, so households will continue to spend more of their budget on groceries than they were doing pre-pandemic.

“Second, shopping at Walmart has now become an established habit and new shoppers appear to be satisfied with the proposition. Because of both things we think that over the medium-term Walmart will hold on to most of the gains it has made.”