Walmart sees strong sales from higher-income households

Walmart raised its end-of-the-year projections after strong demand from consumers, especially from upper-income households earning $100,000 or more yearly.

The company’s Q3 sales beat expectations, and the big-box retailer expects strong demand from holiday shoppers.

Although transaction growth slowed, Walmart noticed that average spending per trip increased among its shoppers; high-income customers drove 75% of the quarter’s share gains.

The company has seen strong sales of items like AirPods, TVs, and tires.

But Trump tariffs can increase prices
The retailer has warned that consumers may see price hikes in items due to tariffs promised by Donald Trump, as the company will pass on the additional costs to customers.

The President-elect has promised import tariffs of up to 100% on Chinese goods and 20% on items from other countries.

Walmart is also expanding its e-commerce, with online orders surpassing $2 billion monthly for a year. The company is focused on making its digital business profitable without rushing, CEO Doug McMillon noted.

The hypermarket chain’s shares climbed 4.5% Tuesday, adding $24.3 billion to the market cap. Its shares are also up 65% year-to-date.