Walmart report: Upper-income households fuel growth [Video]

Walmart’s business is surging. Customers making more than US$100,000 a year are fuelling the growth.

Walmart’s U.S. sales at stores open for at least a year grew 5.3 per cent last quarter compared with the year prior, the company said Tuesday, and its profit grew 8.2 per cent last quarter. Walmart raised its financial outlook, a signal it expects a strong holiday shopping season.

Walmart said it gained market share last quarter, driven “primarily from upper-income households.” Households making more than US$100,000 a year accounted for 75 per cent of the company’s gains.

Shares of the mega retailer hit fresh highs Tuesday morning, jumping more than three per cent after the earnings results were released. The stock has consistently been reaching new highs throughout the past two months.

Low and middle-income shoppers have traditionally formed the core of Walmart’s customer base, and they are flocking to Walmart to save money. …