Shares in US retail giant Walmart (WMT) reacted positively to its latest trading update (15 November), climbing 7.5% to $149 pre-market for a year-to-date gain of 3% compared with a loss of 17% for the S&P 500 index.

The firm reported revenues for the third quarter of $152.8 billion, up 8.7% on a headline basis or 9.8% in constant currencies and comfortably ahead of market forecasts of $148 billion.

US sales climbed 8.2% on a like-for-like basis as the firm
made further gains in the grocery market, with the Sam’s Club cash-and-carry business posting 10% like-for-like growth.

International sales were up 7% to $25.3 billion, driven by double-digit growth at the Mexican subsidiary Walmex (WALMEX:BMV), although the strong dollar took a bite out of overseas revenues.

Adjusted group earnings per share were $1.50, more than 13% above the consensus estimate of $1.32 per share, building on the second quarter’s 10% beat and leading the firm to raise its full year operating earnings guidance to a decline of 6.5% to 7.5% from 9% to 11% previously.

In addition, the company announced a new $20 billion share buyback, replacing the existing programme which still had $1.9 billion remaining at the end of September.

President and chief executive Doug McMillon said the company had ‘significantly improved’ its inventory position and would continue to reduce stocks during the fourth quarter.