Walmart sees sales rise at stores and online, raises outlook

Walmart raised its financial outlook for the year after beating Wall Street's expectations for its fiscal second quarter and seeing the strongest growth in more than a decade in sales at established stores. Its shares surged 10 per cent before the opening bell today.

The report is strong evidence that Walmart's efforts to improve the experience shoppers have at its stores and expand its online services, particularly in grocery, are helping bring people to its websites and stores. Like many other retailers, Walmart is also benefiting from a stronger job market and rising confidence.

Revenue at stores open at least a year rose 4.5 percent at Walmart's U.S. division, topping analysts' expectations for a 2.4 percent increase.

The measure is a strong indicator of a retailer's health. The figure was helped by a more than 2 percent increase in customer traffic and in transactions. Online sales soared 40 percent, up from a 33 percent increase the previous quarter.

With shoppers feeling confident, the National Retail Federation trade group raised its annual sales forecast this week, citing the results of tax cuts and an improving job market. But it warned that trade wars between China and the US could dampen consumer confidence in the second half of the year, the busiest time for retail.

Since buying Jet.com for more than $3 billion two years ago, Walmart has been bolstering its online business by acquiring brands like Bonobos and ModCloth.

It's also working to speed up delivery to compete better with Amazon, and is expanding same-day grocery delivery.

Walmart is also revamping its website with a focus on fashion and home furnishings and to highlight what services are available, like the ability to order groceries online and pick them up. It has also teamed up with Lord & Taylor to offer the department store dedicated space on its site.

Internationally, Walmart has been refocusing on areas with big growth potential like India and China. In May, it acquired a controlling stake in Flipkart, India's largest online retailer, for $16 billion in its biggest acquisition yet. And it is selling its British unit, Asda, which has been struggling with intense competition from German no-frills discounters Aldi and L