Walmart raises its sales outlook again as high earners splurge on nice-to-haves

Better than a BOGO deal… Walmart shares hit an all-time high yesterday after America’s largest retailer stocked up a Q3 earnings beat. Walmart’s sales jumped 5%, to $169B, as shoppers spent more per visit. Strong demand for curbside and same-day delivery drove a 22% jump in online order revenue. Walmart’s discretionary sales (products beyond the grocery aisles) also rose for the second straight quarter after over a year of declines.

• Good tidings: Walmart boosted its annual sales and profit forecast for the third time this year, partly crediting its quarterly growth to higher-income shoppers ($100K+/year).

• Tarrifying possibilities: Yesterday Walmart joined the list of retailers that’ve said they might raise prices if Trump's proposed tariffs are implemented.

New fits > stocked fridge… Walmart is often viewed as a bellwether for US consumer spending, and its results suggest Americans are trending discretionary. Since the pandemic, consumers have prioritized essentials like groceries and TP over nice-to-haves like new laptops, decorative pillows, and fuzzy robes. That’s shifting: in September, US discretionary spending grew for the fourth month in a row (though still below 2021 levels). Target, which reports today, topped expectations in August after more of its shoppers treated themselves to fresh outfits and beauty products.