Walmart Inc. reported strong first quarter results, beating analysts’ expectations and raising its annual sales and profit targets. The retail behemoth drew from price-conscious shoppers trading down to cheaper meat products and store brands, easing worries of consumer spending softening due to inflation. Comparable grocery sales grew in the low double-digits in the quarter in the United States, driven by strong demand for food and increased purchases from wealthier households. Walmart’s strong results are in stark contrast to smaller rival Target’s bleak second-quarter forecast, which it blamed on weak consumer demand. Operating income rose 17.3% in the first quarter, in part due to higher contributions from its advertising, delivery and fulfillment services businesses. Net revenue rose 7.6% to $152.30 billion in the first quarter, beating estimates of $148.76 billion. Walmart now expects full-year earnings per share in the range of $6.10 to $6.20 compared to the prior outlook of $5.90 to $6.05.
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