Walmart defies spending slowdown, hikes outlook ahead of holidays as it plans NYSE exit

Core Insights - Walmart raised its annual forecasts for the second time this year, indicating strong confidence ahead of the holiday season, with shares rising 5.9% following the announcement [1][2] - The company reported a 4.5% increase in US comparable sales and a total revenue increase of 5.8% to $179.5 billion, surpassing market expectations [4][6][13] Financial Performance - Adjusted earnings per share outlook was lifted to $2.58 to $2.63, up from a previous range of $2.52 to $2.62 [2] - Total revenue rose to $179.5 billion, exceeding forecasts of $177.4 billion, with third-quarter adjusted earnings at 62 cents per share, beating Wall Street expectations by 2 cents [13] Sales and Consumer Trends - Online sales surged by 28%, primarily driven by grocery sales, with overall e-commerce growth marking the seventh consecutive quarter above 20% [4][5] - Wealthier consumers are increasingly utilizing Walmart's expedited delivery services, which saw a 70% increase in the quarter [5] Market Position and Strategy - Walmart's performance highlights a bifurcated consumer landscape, where it attracts both lower and higher-income households, contrasting with other retailers like Target, which are facing challenges [12][13] - The company plans to shift its stock listing to the Nasdaq from the NYSE, reflecting its commitment to technology and automation in operations [14][17] Leadership Changes - Longtime CEO Doug McMillon announced his retirement, with John Furner set to succeed him, as Walmart accelerates its tech-driven growth strategy [8][14] Operational Innovations - Over 40% of Walmart's new software code is now AI-generated or AI-assisted, and more than 60% of freight is moving through automated distribution centers [15][16]