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International DIY News

Walmart Q2: 'Strong Top-Line Growth'

Walmart store exterior 1 725 x 500

Walmart has reported on Q2 trading for the 2023 financial year.

  • Walmart U.S. grew comp sales(1) 6.5%, including mid-teens in food, and eCommerce up 12% 
  • Q2 FY23 GAAP EPS of $1.88; Adjusted EPS2 of $1.77 
  • Company maintains outlook for back-half of FY23

Second-quarter highlights

  • Company delivered strong top-line growth globally, partially driven by inflation. Total revenue was $152.9 billion, up 8.4%, or 9.1% in constant currency(2) 

  • Walmart U.S. comp sales1 grew 6.5% and 11.7% on a two-year stack. eCommerce growth was 12% and 18% on a two-year stack. Continued to gain market share in grocery

  • Sam’s Club comp sales(1) increased 9.5%, and 17.2% on a two-year stack. Membership income increased 8.9% with member count at an all-time high

  • Walmart International net sales were $24.4 billion, an increase of $1.3 billion, or 5.7%, negatively affected by $1.0 billion from currency fluctuations. Double-digit comps in three largest markets of Mexico, Canada, and China.

  • Global advertising business(3) grew nearly 30%, led by Walmart Connect in the U.S. and Flipkart advertising.

  • Consolidated gross profit rate declined 132 basis points, primarily due to markdowns and mix of sales in the U.S., and an inflation-related LIFO charge at Sam’s Club

  • Consolidated operating expenses as a percentage of net sales decreased 45 basis points, primarily due to strong sales growth partially offset by wage investments.

  • Consolidated operating income was $6.9 billion, a decrease of 6.8%, positively affected by $173 million from an insurance settlement for Walmart Chile.

  • GAAP and Adjusted EPS2 include a $0.05 impact from the Walmart Chile insurance settlement discussed above, as well as a $0.05 impact from a dividend related to the Company’s equity investment in JD.com.

Doug McMillon, President and CEO, Walmart, said: 

“We’re pleased to see more customers choosing Walmart during this inflationary period, and we’re working hard to support them as they prioritize their spending. The actions we’ve taken to improve inventory levels in the U.S., along with a heavier mix of sales in grocery put pressure on profit margin for Q2 and our outlook for the year. We made good progress throughout the quarter operationally to improve costs in our supply chain, and that work is ongoing. We continue to build on our strategy to expand our digital businesses, including the continued strength we see in our international markets.” 

(1) Comp sales for the 13-week period ended July 29, 2022 compared to the 13-week period ended July 30, 2021, and excludes fuel. See Supplemental Financial Information for additional information.
(2) See additional information at the end of this release regarding non-GAAP financial measures.
(3) Our global advertising business is recorded either in net sales or as a reduction to cost of sales, depending on the nature of the advertising arrangement

Source : Walmart

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17 August 2022

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