Walmart Maintains Momentum In Q2

Following its recent acquisition of Jet.com, Walmart maintained its momentum in the second quarter, posting a rise in net income, comps and net sales.

In the second quarter ending July 31, Wal-Mart Stores recorded company consolidated net income of $3.77 billion, or $1.21 per diluted share, versus $3.48 billion, or $1.08 per diluted share, in the year-prior quarter.

According to the company, adjusted sales per diluted share, excluding the 14 cents per share non-cash benefit from the sale of Yihaodian in China, was $1.07. The company did not report an adjusted earnings metric in last year’s second quarter.

Adjusted diluted earnings per share beat an analyst average estimate published by MarketBeat of $1.02.

Comparable store sales for Walmart operations in the United States were up 1.4% without the effects of fuel price volatility included. Walmart namesake store comps were up 1.6% while those for Sam’s Club were up 0.6% versus the year earlier. A traffic increase was the prime engine of comp increases at Walmart stores while Sam’s Club benefited from a stronger ticket.

Net sales were relatively flat at $119.41 billion versus $119.33 billion in the year-earlier quarter, Walmart reported. Total revenues, including membership fees, were $120.85 billion as compared with $120.23 billion in the 2015 period. Operating income was $6.17 billion versus $6.07 billion in last year’s second quarter. On a constant currency basis, total revenues gained 2.8% to $123.6 billion, and, on the same basis, operating income advanced 4.2% to $6.32 billion. In its overall operation, e-commerce sales increased by 11.8%.

”We’re pleased with the positive momentum in our business,” said Doug McMillon, Wal-Mart president and CEO. “Our strategy in the U.S. is working as we delivered an eighth consecutive quarter of positive comps, and international also performed well. We remain focused on building e-commerce capabilities globally and executing our omnichannel plan, as evidenced by our recent alliance with JD.com in China and agreement to acquire Jet.com in the U.S. Walmart is uniquely positioned to provide customers with a seamless shopping experience where we save them time and money.”

Walmart operates 11,539 stores under 63 banners in 28 countries and e-commerce websites in 11 countries.