Walmart will report fiscal first-quarter earnings before the bell on Thursday, after Home Depot and Target mentioned customers have pulled again on big-ticket objects and discretionary purchases.

Here’s what Wall Street expects for the quarter, in accordance to Refinitiv consensus estimates:

• Earnings per share: $1.32
• Revenue: $148.76 billion

As the nation’s largest grocer, Walmart could also be in a stronger place than different retailers. Nearly 60% of the big-box retailer’s annual gross sales in the U.S. come from grocery, which can present steadier gross sales if customers purchase principally requirements as they pull again on spending in the face of persistent inflation.

Walmart has attracted higher-income grocery customers over the previous three quarters by emphasizing worth, as meals stays expensive. Its non-public manufacturers, which price lower than nationwide manufacturers, account for greater than 20% of its gross sales at Walmart and over 30% of gross sales at Walmart-owned Sam’s Club, the firm’s Chief Financial Officer John David Rainey mentioned final month at an investor day.

Yet prospects could have much less to spend in the grocery aisle, too. Pandemic-related emergency funding from the Supplemental Nutrition Assistance Program, previously often called meals stamps, ended in March in most states. That means lower-income Americans will have to dig deeper to cowl the price of meals whereas paying the hire and juggling different bills.

Walmart gave a weaker-than-expected full-year outlook in February, saying it expects same-store gross sales for Walmart U.S. to rise between 2% and a pair of.5%, excluding gasoline. It mentioned adjusted earnings per share would vary from $5.90 to $6.05, excluding gasoline, for the fiscal yr.

At an investor day in April, Walmart showed off an automated warehouse and emphasised its push to drive larger earnings — even when gross sales proceed to sluggish. CEO Doug McMillon mentioned he expects earnings to develop at a faster tempo than gross sales over the subsequent 5 years as the retailer leans on automation and expands into higher-margin companies like promoting and success companies.

Shares of Walmart closed Wednesday at $149.53, bringing its market worth to $403.33 billion. Its inventory has climbed practically 6% yr to date. Shares have trailed the S&P 500‘s roughly 8% achieve and the XRT‘s practically 2% achieve throughout the similar interval.