Walmart puts up strong Q3, announces opioid settlement
NEW YORK (AP) — Walmart reported higher sales in its fiscal third quarter as more Americans look for deals, particularly in groceries, in the face of high inflation.
The nation's largest retailer raised its full-year earnings outlook on the strong quarterly results.
Also on Tuesday, Walmart agreed to pay $3.1 billion to settle lawsuits nationwide over the impact of prescriptions its pharmacies filled for powerful prescription opioid painkillers. The agreement must still be approved by 43 states, but company shares jumped nearly 7% in morning trading.
The settlement is similar to those already announced by CVS Health and Walgreen Co. Walmart said in a statement that it strongly disputes the allegations and that the settlement doesn't include any admission of liability.
Walmart is among the first major retailers to report fiscal third-quarter results and is considered a barometer of spending given its size, so analysts carefully parse through the data. Home Depot, the nation's largest home improvement retailer, reported on Tuesday that revenue and profit easily topped expectations. But investors were spooked after the home improvement retailer stuck by projections it put out earlier this year.
Target is slated to report results on Wednesday, while Macy's and Kohl's are among the merchants set to report financial performance on Thursday.
Amazon said late last month that it returned to profitability in its third quarter after two straight quarters of losses, but it also posted weaker-than-expected revenue and issued disappointing projections for the current quarter.
Like many other retailers, Walmart benefited in the early days of the pandemic as shoppers spent heavily to furnish their homes or buy casual clothing as they stayed indoors.
But spending has since shifted away from casual clothes and TVs to...