Walmart boosts outlook again, plans move to Nasdaq

*

Walmart's (WMT) U.S. comparable sales up 4.5%, beating 3.8% estimates

*

Adjusted earnings 62 cents/ share; revenue up 5.8% to $179.5 billion

*

Wealthier consumers drive growth, Walmart+ boosts profits

*

Walmart (WMT) shifts listing to Nasdaq from NYSE on Dec 9

*

Raises full-year net sales and earnings forecasts

Nov 20 (Reuters) - Walmart (WMT) on Thursday raised its annual forecasts for the second time this year after another strong quarter led by surging online sales, in a signal of confidence headed into the holiday season.

The company also set a December move of its stock listing to Nasdaq.

The company reported growth in U.S. comparable sales, which includes online and stores, of 4.5% for the August through October period, above estimates for 3.8% growth, according to LSEG. It also forecast annual net sales to rise 4.8% to 5.1%, compared with a prior target of a 3.75% to 4.75% increase.

U.S. households, particularly low- and middle-income earners, have been under mounting financial stress for some time due to persistent inflation and a slowing job market. The strain has sapped consumer confidence and is reshaping spending habits, as shoppers cut back on discretionary purchases like home renovation and dining out while prioritizing essentials at the lowest possible price.

This environment has benefited Walmart (WMT), long known as a destination for lower-income households, but also increasingly for wealthier consumers. Over the past several quarters, Walmart (WMT) has highlighted that households earning more than $100,000 have accounted for roughly two-thirds of its growth, with much of that momentum coming from Walmart+ subscribers who benefit from free same-day and next-day delivery. By contrast, home improvement firms Lowe's and Home Depot (HD) lowered their annual targets this week, blaming consumer weakness, and Target sales were also lower.

Adjusted earnings came in at 62 cents per share. Revenue rose 5.8% to $179.5 billion.

MOVES LISTING TO NASDAQ AMID AI PUSH

Walmart (WMT) also raised its annual adjusted earnings per share target range to $2.58 to $2.63, from $2.52 to $2.62 expected earlier, and said it would change its listing to the Nasdaq stock market from the New York Stock Exchange beginning Dec 9.

"Moving to Nasdaq aligns with the people-led, tech-powered approach to our long-term strategy," said John Rainey, the company's finance chief.

A strong appeal to technology firms and more flexible requirements have helped Nasdaq beat the NYSE for listings in recent years.

Walmart (WMT) named veteran executive John Furner its new CEO last week, replacing Doug McMillon at a time the retail bellwether is deepening its push to become more tech savvy by adopting artificial intelligence in everything from inventory management and demand forecasting to search and advertising.

The company's operating income has held up fairly well even in a choppy economy as it derives about half of its profit growth from advertising revenue, Walmart (WMT) marketplace sales and fee revenue, and its $98/year Walmart+ membership program.

Global advertising revenue grew 53% in the quarter, compared with 46% in the second quarter.

"eCommerce was a bright spot again this quarter. We're gaining market share, improving delivery speed, and managing inventory well," said outgoing CEO Doug McMillon in a statement.

The company holds its post-earnings call at 8 a.m. ET. (Reporting by Siddharth Cavale in New York and Juveria Tabassum in Bengaluru Editing by Nick Zieminski)