NEW YORK (AP) 鈥�
Walmart reported strong third quarter profits and revenue as more Americans seek to cut spending in face of high inflation.
Also on Tuesday, Walmart to settle lawsuits nationwide over the impact of prescriptions its pharmacies filled for powerful prescription opioid painkillers. The agreement must still be approved by 43 states to take effect, but company shares jumped 6% before the opening bell.
The settlement is similar to those already announced by CVS Health and Walgreen Co.
Walmart, based in Bentonville, Arkansas, lost $1.79 billion or 66 cents per share for the quarter ended Oct. 31, including the opioid settlement. That compares with a profit of $3.11 billion or $1.11 per share. Adjusted per share results were profit of $1.50 which handily beat analysts' estimates for $1.32 per share.
Sales rose 8.7% to $152.81 billion, above estimates of $147.7 billion, according to FactSet.
Sales at stores opened at least a year rose 8.2%, higher than the 6.5% in the previous quarter. , Online sales rose 16%.
Walmart is the first major retailer to report fiscal third-quarter results and is considered a barometer of spending given its size so analysts carefully parse through the data.
Walmart benefited in the early days of the pandemic as shoppers spent heavily to outfit their homes during the pandemic.
But American spending has shifted since the pandemic, away from casual clothes and TVs, and more on necessities. is also presenting challenges for Walmart and other retailers as low-income shoppers trim spending.
Investors were rattled in July when Walmart lowered its profit outlook for the second quarter and year, saying rising prices on food and gas are forcing shoppers to cut back on discretionary items, particularly clothing, that carry higher profit margins. The last time Walmart lowered its profit outlook mid-quarter was in October 2015.
said late last month that it returned to profitability in its third quarter after two consecutive quarters of losses, but also posted weaker-than-expected revenue and disappointing projections for the current quarter.
The good news is that inflation has begun to moderate. Consumer inflation reached 7.7% in October from a year earlier and 0.4% from September, the Labor Department said earlier this month. The year-over-year increase, a slowdown from 8.2% in September, was the smallest rise since January. Food price increases also moderated. By contrast, energy prices rebounded last month after having fallen in August and September.
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AP writer Geoff Mulvihill in New Jersey contributed to this report.
Anne D'innocenzio, The Associated Press
