- Walmart reported results for the second quarter which saw the world’s largest retailer beat sales and profit estimates.
- Revenue reached $161.63 billion, up 5.7%, or 5.4% in constant currency, higher than the expected $160.27 billion analysts expected.
- Walmart U.S. achieved a 6.4% growth in same-store sales (excluding fuel) compared to last year’s Q2, beating Factset consensus forecasts by an impressive 2.3%. Walmart US transactions increased by 2.9% and the average ticket rose by 3.4%. Online sales grew 24%, driven by third-party marketplace and store pickup/delivery. Chief Financial Officer John David Rainey noted a modest improvement in sales of items like electronics and home goods, considered a bellwether for the economy.
- Net income for the period rose 53% to $7.89 billion, or $2.92 per share, compared with $5.15 billion, or $1.88 per share a year earlier. Earnings per share (adjusted) were $1.84, surpassing the expected $1.71.
- Walmart raised its full-year forecast, projecting a 4% to 4.5% increase in consolidated net sales. Adjusted earnings per share for the year are anticipated to range from $6.36 to $6.46.
- Walmart is the largest supermarket chain in the world, operating in more than 10,500 stores globally. Walmart stands out due to staple sales and private brands. And it continue to evolve digitally, with new revenue streams like advertising and Walmart+ boosting profits. Walmart Connect’s US ad business grew 36% in this period.
- Even with inflation easing, inventory down 5%, fewer markdowns, and positive back-to-school trends, the retail giant remains cautious in its outlook.
By Lee Kern