Walmart CFO talks consumers, inventory, back-to-school, and gas prices after earnings beat

Walmart’s business looks to have stabilized after surging inflation for food and gas weighed on the company’s guidance a few weeks ago.

The world’s largest retailer revised its full year guidance for profits to drop 9% to 11% from a prior range for a 11% to 13% decline.

Walmart stock popped 4% in pre-market trading Tuesday following a 15 cents a share beat versus Wall Street profit estimates. Sales came in better than expected as well.

Yahoo Finance caught up with Walmart’s well-regarded CFO John David Rainey (who joined from PayPal in April) for his quick take on the quarter and outlook. Here’s an edited and condensed version of our chat:

On the state of the U.S. consumer:

“I’d say that what we’re seeing is they are still relatively healthy. We’ve seen some changes in consumer behavior that I put in three categories. One is there’s a trade down in both quality and quantity. So instead of buying deli meats, we’re seeing things like canned tuna and chicken and even beans, as units were…

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