Walmart (NYSE:WMT) gave a lift to the retail sector on Tuesday with a strong earnings report that was highlighted by 8.2% jump in U.S. comparable sales. Higher prices accounted for almost all of the sales gain as the retail giant said its inventory position was in much better shape. During the conference call, Walmart (WMT) highlighted strength with the U.S. consumer, although some trading-down impact was noted with higher-income customers.
Seeking Alpha author Ahan Vashi broke down the WMT print, saying the strong Q3 results prove that the retail bellwether is clearly benefitting from a shift in consumer spending mix amid inflationary pressures. Meanwhile, Bloomberg Intelligence Jennifer Bartashus analyst said Walmart's (WMT) inventory position may translate to less risk from postholiday markdowns and thinks Walmart is capturing a greater share of spending from shoppers seeking value.
Notable retail sector gainers in the wake of WMT's earnings topper included ThredUp (TDUP) +12.2%, Stitch Fix (SFIX) +9.4%, Rent the Runway (RENT) +8.2%, Fossil (FOSL) +7.7%, Build-A-Bear Workshop (BBW) +6.4%, Shoe Carnival (SCVL) +5.7%, Children's Place (PLCE) +5.7%, Big Lots (BIG) +5.5%, Lulu's Fashion Lounge (LVLU) +4.9%, American Eagle Outfitters (AEO) +4.8%, Big 5 Sporting Goods (BGFV) +4.8%, Dillard's (DDS) +4.8%, and Macy's (M) +4.3%.
As for Walmart (WMT), shares showed a 7.25% gain at 10:20 a.m.
The SPDR S&P Retail ETF (NYSEARCA:XRT) was up 3.88% to easily outpace the broad market.