Walmart bumps up outlook ahead of holidays, plans listing switch to Nasdaq

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U.S. comparable sales up 4.5%, beating 3.8% estimates

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

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Wealthier consumers drive growth in delivery, general merchandise

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

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Raises full-year net sales and earnings forecasts

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Shares rise 5.9% in morning trading

By Juveria Tabassum and Siddharth Cavale

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.

Shares rose 5.9% in early trading after it bumped up its annual net sales forecast to between 4.8% and 5.1%, up from a prior target of 3.75% to 4.75%.

It also lifted its adjusted earnings per share outlook to $2.58 to $2.63, compared with $2.52 to $2.62 previously, and said it will shift its stock listing to the Nasdaq from the NYSE.

"Holiday is off to pretty good start," Chief Financial Officer John David Rainey said on a post-earnings call, pointing to strong Halloween and early Thanksgiving sales. He said the company remains optimistic about shoppers leaning into seasonal holiday events, though some moderation persists, and expects fourth-quarter trends to be broadly in line with earlier quarters.

U.S. comparable sales, which combines online and store sales, rose 4.5% in the August through October period, topping estimates of 3.8% growth, according to LSEG. Online sales were a bright spot, climbing 28%, driven by groceries. Gains came across income brackets, though upper-income households once again led the way, Walmart (WMT) said.

Wealthier consumers are cashing in on the convenience of faster deliveries, and Walmart (WMT) said its "expedited deliveries," which aim to happen under three hours, rose 70% in the quarter.

Overall, U.S. e-commerce marked its seventh consecutive quarter of growth above 20%, the company noted in a presentation. The company also saw strength in discretionary categories, such as apparel and home "hardlines" like furniture, again driven by higher-income households. Spending among lower-income households moderated, Rainey said, noting that, as of October, the gap in wage growth between income groups was the widest it has been in nearly a decade. 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. Tariffs and uncertainty surrounding the recent U.S. government shutdown have also weighed on spending.

Despite the challenging backdrop, Walmart's (WMT) stock has climbed about 11% this year, far outpacing the 0.25% drop in the S&P 500 Consumer Staples index. The stressed consumer environment has played to Walmart's (WMT) strengths, reinforcing its role as a go-to destination not only for lower-income households but increasingly for wealthier shoppers as well. 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. "For the broader retail industry, Walmart's (WMT) performance signals a bifurcated consumer landscape, where value-oriented giants thrive by attracting diverse income groups, while discretionary-focused peers like Target face headwinds," said Bryan Hayes, strategist at Zacks Investment Research.

Third-quarter adjusted earnings for Walmart (WMT) came in at 62 cents per share, beating Wall Street expectations by 2 cents. Total revenue rose 5.8% to $179.5 billion, ahead of forecasts of $177.4 billion.

MOVES LISTING TO NASDAQ AMID AI PUSH

Walmart (WMT) said it will shift its stock listing to the Nasdaq from the NYSE beginning Dec. 9, a move that underscores how deeply technology is now embedded in the company's operations and growth strategy. The exchange transfer also comes just a few days after Walmart (WMT) named veteran executive John Furner its new CEO, succeeding Doug McMillon, as the retailer accelerates efforts to become more tech-driven.

On a post-earnings call with analysts, executives said that more than 40% of Walmart's (WMT) new software code is now either AI-generated or AI-assisted. A decade of investment in automation has also reshaped Walmart's (WMT) U.S. logistics network, executives said, with more than 60% of freight now moving through automated distribution centers and over half of online orders fulfilled in automated facilities.

Behind the scenes, Walmart (WMT) is tapping advanced tools like Agentic AI to sharpen catalog accuracy and spot gaps in its assortment, helping customers find products faster.

"Moving to Nasdaq aligns with the people-led, tech-powered approach to our long-term strategy," Rainey said on the call.

Walmart's (WMT) strength extended beyond the United States, with international sales climbing 10.8% in the quarter. The gains were fueled by strong performances from its Flipkart marketplace in India, Sam's Club in China, and Walmex stores in Mexico. (Reporting by Siddharth Cavale in New York and Juveria Tabassum in Bengaluru Editing by David Gaffen and Nick Zieminski)