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Target calls, raises Walmart’s 2Q profit and full year guidance
Walmart beat analysts’ second quarter earnings estimates by a penny when it reported earnings per share of $1.09. The company also touted the fact that it was raising its full year profit forecast, although it did so by the one cent of additional profit it had already banked during the second quarter. Walmart said it now expects full year profits to total between $4.41 and $4.51 versus prior guidance of $4.35 to $4.50.
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Comp sales acceleration may be ending at Sam’s
Sam’s Club run of six consecutive quarters of accelerating same-store sales growth will come to an end in the third quarter unless the warehouse club operator exceeds guidance provided earlier this week after reporting a 5% second-quarter comp increase.
Even though Sam’s president and CEO Brian Cornell noted that momentum remains strong, he added that “it’s important to remember that it was in the third quarter last year that our comp performance began to accelerate, so our comparisons for the back half will be more challenging.”