Walmart posted second-quarter comparable sales gains highlighting marketplace and advertising growth, beating Wall Street revenue and earnings estimates in the process.
Company net income was $4.5 billion, or 56 cents per diluted share, versus $7.89 billion, or 97 cents per diluted share, in the year-prior quarter. Adjusted for one-time events, earnings per diluted share were 67 cents versus 61 cents in the year-previous period.
An analyst consensus estimate published by Yahoo Finance called for adjusted diluted earnings per share of 65 cents and revenues of $168.53 billion.
Comparable sales increased by 4.3% year over year without the impact of fuel price volatility, with Walmart U.S. up 4.2% and Sam’s Club up 5.2%, the company reported.
Net sales were $167.77 billion while total revenue, including membership fees, was $169.34 billion, Walmart stated, versus $160.28 billion and $161.63 billion, in the year-earlier period. Operating income was $7.94 billion versus $7.32 billion in the year-before quarter, while adjusted operating income was $7.96 billion versus $7.41 billion.
Year over year, Walmart U.S. sales advanced to $115.35 billion from $110.85 billion while operating income increased to $6.59 billion from $6.11 billion. Sam’s Club sales grew to $22.85 billion from $21.83 billion year over year, while operating income increased to $581 million from $521 million, the company noted.
Among highlights in the quarter noted by Walmart are global e-commerce sales growth of 21%, led by store-fulfilled pickup and delivery and marketplace; and a global advertising business gain of 26%, including a 30% increase for Walmart Connect in the U.S.
Doug McMillon, Walmart president and CEO, said in a conference call that second-quarter company gains included “improvements in general merchandise.” Despite the economy slowing under the interest rate policy of the United States Federal Reserve, McMillon said, “So far we aren’t experiencing a weaker consumer overall.” He added, “Customers from all income levels are looking for value, and we have it.”
McMillon said Walmart continues working to press for lower prices. He maintained pricing was “slightly deflationary” in the second quarter.
In announcing the financial results, McMillon said, “Each part of our business is growing: store and club sales are up, e-commerce is compounding as we layer on pickup 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.”
