THE WHAT?  Walmart Inc. has posted robust quarterly results, reporting a 3.8% sales growth for U.S. stores open for at least a year for the quarter ended April 26, outperforming Wall Street expectations. This growth was driven by a 3.8% increase in transaction counts and a 22% surge in e-commerce, despite flat average ticket sizes as inflation eased.

THE DETAILS Sales at U.S. Walmart stores rose 3.8%, driven by higher transaction counts and significant contributions from e-commerce. In light of this performance, Walmart has raised its full-year earnings guidance to the high end or slightly above its original forecast, with expected revenue growth of 3% to 4%. Following the announcement, Walmart’s shares closed 7% higher, marking the biggest one-day gain since March 2020.

THE WHY?  “These are not inflation-driven results,” stated CEO Doug McMillon, emphasizing that increases in units, transactions, and market share fueled the performance. He noted the company’s focus on offering more discounts to attract value-seeking customers.