Walmart lifts outlook, El Paso store reopens

Credit: Reuters Studio
Published on November 14, 2019 - Duration: 01:32s

Walmart lifts outlook, El Paso store reopens

Walmart raised its earnings forecast ahead of the holiday shopping season.

And as Fred Katayama reports, it reopened its El Paso, Texas store that was the site of a massacre that killed 22 people.


Walmart lifts outlook, El Paso store reopens

EDITORS NOTE: ADDS INFORMATION ON REOPENING OF STORE IN EL PASO, TEXAS.

Walmart spreading some pre-holiday cheer.

Domestic same-store sales at the world's largest retailer rose for the 21st straight quarter and beat analysts expectations.

Walmart grew its market share in food and groceries as shoppers spent more money at its stores.

What's more, the company sees the momentum continuing, lifting its annual earnings forecast.

Its CFO said the consumer remains in "pretty good shape" - comforting words for a Wall Street concerned about the risks of a recession.

Walmart also managed to buck the impact of tariffs on Chinese goods.

Analysts point out that the retailer earns more than half of its revenue from sales of food and groceries, enabling it to manage the pressure from tariffs better than many of its rivals.

President Donald Trump used Walmart's results to argue that the tariffs he slapped on China have had little impact on consumers, tweeting, "Walmart announces great numbers.

No impact from Tariffs." Online sales rose 41%, but it wasn't all rosy.

Walmart's online expansion has come at a cost to profitability.

Its investment in its e-commerce business drove down operating income.

But investors overlooked that, sending Walmart's shares higher in early Thursday trading.

Later in the morning in El Paso, Texas, employees cheered as they welcomed back customers to the Walmart store that was the site of a massacre that killed 22 people..

Three months after the attack, The vast majority of the store's 400 employees are returning to work at that location.

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