Strong Store, E-Com Sales Drive Walmart's Q2 Growth
Second quarter revenue at Walmart was up 4.8% with net sales in its U.S. division a key driver of growth.
Consolidated revenue for the quarter ended July 31 was $169.3 billion, up from consolidated revenue of $160.3 billion in the comparable quarter the previous year. Net income in the quarter was $4.5 billion, down 43% from the same quarter the previous year with earnings per share down 42.3% to $0.56.
“Our team delivered another strong quarter,” said Doug McMillion, president and CEO of Walmart. “They work hard every day to help our customers and members save time and money. Each part of our business is growing – store and club sales are up, eCommerce is compounding as we layer on pick-up, and even faster growth in delivery as our speed improves. Our newer businesses like marketplace, advertising, and membership, are also contributing, diversifying our profits, and reinforcing the resilience of our business model.”
Net sales in Walmart’s U.S. division were up 4.1% to $115.3 billion. Comparable sales excluding fuel were up 4.2%. Transactions were up 3.6% and the average ticket was up 0.6%. Walmart officials said the second quarter sales growth was driven by strength in transaction counts and unit volumes across stores and eCommerce channels, the latter of which grew 22% led by store-fulfilled pickup & delivery.
At Sam’s Club, net sales were up 4.7% to $22.9 billion. Comparable store sales excluding fuel were up 5.2%. Transactions were up 6.1% with the average ticket up 0.8%. Food and health and wellness were key drivers of sales in the quarter with Sam’s gaining dollar and unit share in grocery and general merchandise categories, including apparel and electrics. E-commerce sales were up 22%.
Shopper visits to Walmart and Sam’s Club stores were also up during the quarter. Data from Placer.ai show year-over-year store visits grew 3.9% at Walmart locations and increased 7.5% at Sam’s Club.
For the third quarter, Walmart is forecasting a company-wide consolidated net sales increase of between 3.25% to 4.25% with net income expected to increase between 3% and 4.5%
