Walmart lifts annual sales, profit view on resilient consumer spending

Walmart Inc raised its annual sales and profit targets on Thursday as the retail behemoth drew from price-conscious shoppers trading down to cheaper meat products and store brands, easing worries of consumer spending softening due to inflation. Shares of the top U.S. retailer rose about 1.3% in pre-market trading on Thursday after it also reported better-than-expected results for the first quarter. Walmart has been keeping grocery prices low to fend off competition from Target Corp and Kroger even as the industry struggles with higher costs, especially for labor.

As a result, sales at Walmart’s U.S. stores open at least a year rose 7.4%, excluding fuel, in the first quarter ended April 30, beating expectations of a 5.25% increase.