Walmart powered through a strong second quarter, with comps gaining 2.8% in the U.S. and the retailer’s e-commerce operations boosting sales.
For the three months ended July 31, Walmart posted company net income of $3.61 billion, or $1.26 per diluted share, versus a company net loss of $861 million, or 29 cents per diluted share, in the year-prior quarter. Adjusted earnings per share in the quarter were $1.27 versus $1.29 in the year-earlier period. Walmart adjusted diluted earnings per share topped a MarketBeat-published analyst consensus second quarter estimate of $1.22.
At Walmart U.S., comparable store sales, excluding fuel impact, gained 2.8% in the quarter year over year, with transactions up 0.6%, ticket up 2.2% and e-commerce gaining 140 basis points. Comps at Sam’s Club advanced 1.2% in the period year over year, with transactions up 5% but ticket down 3.8% and e-commerce gaining about 180 basis points.
Overall, Walmart asserted that e-commerce sales increased by 37% in the quarter versus the previous second quarter, with a significant boost from online grocery.
Net sales for the quarter advanced to $129.39 billion from $127.06 billion in the year-previous quarter, while new revenues increased from $130.38 billion from $128.03 billion. Operating income was $5.58 billion versus $5.75 billion in the year-before period.
According to Walmart, the inclusion of Flipkart, an Indian e-commerce operator effectively acquired last year, in the second quarter financial numbers negatively affected profit results.
“Customers are responding to the improvements we’re making, the productivity loop is working, and we’re gaining market share,” said Doug McMillon, Walmart president and CEO. “We’re on track to exceed our original earnings expectations for the year, and that’s possible because of the work our associates do every day.”
Additional second quarter highlights for Walmart include:
- The appointment of Suresh Kumar as new chief technology officer and chief development officer.
- Advancing grocery pick up to more than 2,700 U.S. locations.
- Reaching 1,100 delivery locations in the U.S.
- Announcement of Walmart InHome Delivery of fresh groceries and everyday essentials dropped directly into consumer homes.
- Expansion of NextDay delivery service from Walmart.com to 75% of the U.S. population.
- Rollout of new Sam’s Garage app nationwide at Sam’s Club.
- Launch of same-day pickup nationwide at Sam’s Club.