Walmart Inc.’s top executives predicted new market-share gains and showcased improvements in the retailer’s supply chain during two days of meetings, store visits and warehouse tours with financial analysts.

The company is poised to grab more sales of apparel, home goods and other general merchandise as demand normalises after a slump last year, chief financial officer John David Rainey said Wednesday. An inventory surge in those categories in 2022 spurred markdowns and hammered profit, but the problems are largely cleared up, Walmart said.

Walmart’s heavy investments in supply-chain efficiencies and greater automation are leading to an “inflection point” for shareholder returns, Rainey said. The event won conditional praise from Wall Street, with Baird’s Peter Benedict calling the approach a “powerful strategy if successfully executed.”

Walmart climbed 1.7 percent on Wednesday. The shares have gained 5.6 percent this year, trailing the 6.5 percent increase of the S&P 500 index.

In a statement late Tuesday, Walmart reiterated its financial forecasts for the first quarter and the year as a whole. It also stuck by its goal of boosting sales an average of 4 percent in the next three to five years, with an increase in operating income of more than 4 percent. There’s a potential for faster profit growth, Rainey said.

Outside the US, Walmart sees a path to doubling profits in five years, said Judith McKenna, head of the company’s international operations.

In the US, consumers continue to be more sensitive to prices, especially at lower income levels, chief executive officer Doug McMillon told reporters after the meeting with analysts. But the retailer hasn’t seen a dramatic change in shopping patterns from the recent banking turmoil.

While Walmart used the meetings to tout the efficiencies it’s achieving from greater automation in distribution centres and stores, McMillon downplayed the risk of far-reaching job cuts. Walmart has been paring staff in some e-commerce fulfilment centres recently, but the company has said many affected employees are likely to find other work at the company.

In the longer term, Walmart predicted that as sales rise, it will achieve higher productivity in warehouses.

By Brendan Case

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