*By Carlo Versano*
Walmart, the world's largest retailer, reported its strongest growth in a decade in its second-quarter earnings released before the bell Thursday.
"Every part of the set of numbers were incredible," said Sucharita Kodali, a retail analyst at Forrester.
Revenue for the quarter was $128 billion ー about $2 billion more than expected ー and adjusted earnings per share were $1.29 compared with an expected $1.22.
Walmart said same-store sales were up 4.5 percent for the second quarter, helped by strong grocery and apparel segments. The e-commerce slice of Walmart's business was up 40 percent compared with the same quarter last year.
The retail giant acquired Jet.com two years ago in a bid to attract more affluent, urban shoppers, and bolster Walmart's e-commerce strategy. It appears to be working, Kodali said, but Amazon maintains an online advantage. "It's still a work in progress," she said Thursday in an interview with Cheddar.
Walmart seems to be riding strong consumer spending, low unemployment, and wage growth to better-than-expected earnings. Shares of Walmart stock rose about 10 percent Thursday morning after the company's earnings report.
But Kodali said the retail sector may face headwinds from tariffs, higher input costs for raw materials, and rising gas prices. "All of these things are going to adversely affect Walmart," she said.
Walmart is the third major retailer to beat earnings expectations this week, after Home Depot and Macy's.
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Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
