M Macys Inc

By Sarah Nassauer 

Walmart Inc. said sales rose at the fastest rate in over a decade as the world's largest retailer continues to draw more people to stores and benefit from strong consumer spending boosting performance at many retailers.

Sales at existing U.S. stores and websites rose 4.5% during the second quarter ended July 31. Walmart also said it expects sales and profit to rise more than previously expected during the current fiscal year. Sales in existing U.S. stores will rise 3%, the retailer said.

Buoyed by rising wages and employment, plus a tax cut, all of which have translated into disposable-income gains, c onsumers are spending again with more abandon than they have in years.

Other retailers including Home Depot Inc. and Macy's Inc. said earlier this week sales rose in the second quarter. Home Depot raised its earnings and sales targets for the year due to rising home-improvement purchases and a strong U.S. economy.

Walmart shares have fallen over 8% so far this year, dropping most precipitously since February when the retailer reported a slowdown in ecommerce sales growth during the fourth quarter.

Walmart said its U.S. ecommerce sales picked up during the quarter to 40%, up from 33% last quarter and in line with the retailer's expectations.

Write to Sarah Nassauer at sarah.nassauer@wsj.com

(END) Dow Jones Newswires

August 16, 2018 07:46 ET (11:46 GMT)

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