(AP) — Walmart on Tuesday reported strong sales for the holiday season as budget-conscious consumers looking for better deals flocked to its stores.
But it gave cautious guidance for the next fiscal year, which led to its shares sinking in premarket trading before it bounced back in the early morning.
Walmart executives told analysts on a call that their guidance reflects the unknowns in the economy as consumers feel more pressure from rising interest rates and high inflation.
The company’s Chief Financial Officer John David Rainey said December was the largest sales month in Walmart’s history, led by food sales.
But more discretionary categories are softening.