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Walmart reports strong Q2 results

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BENTONVILLE, Ark. — Walmart reported on Thursday a second-quarter net income of $3.6 billion compared with a net loss of $861 million a year earlier. Revenue rose 1.8% to nearly $130.4 billion. Operating income, on a constant currency basis, declined 2.4% to $5.6 billion.“Customers are responding to the improvements we’re making, the productivity loop is working, and we’re gaining market share,” Doug McMillon, Walmart’s president and chief executive officer, said in a statement.

Sales at U.S. stores and websites operating for 12 months or more increased 2.8%, excluding fuel. Walmart said U.S. comps have now increased for 20 consecutive quarters, while traffic growth has increased for 19 consecutive quarters. The average ticket was up 2.2%, better than a 1.8% increase a year ago.

Digital sales increased 37% during the quarter ended July 31, matching growth during the prior quarter. Walmart said eE-commerce is getting a boost from the national rollout of services offering in-store pickup — now available at more than 2,700 U.S. stores — and next-day delivery, a program now accessible by 75% of the U.S. population. More than 1,100 locations offer same-day delivery for groceries.

At Sam’s Club, net sales were up 1.8% to $5 billion, and operating income increased 19.4%. The unit launched the Sam’s Garage app during the quarter to improve the experience of members shopping for tires and batteries.

Walmart International posted a 3.3% increase in net sales, excluding currency fluctuations. Second-quarter operating income declined 27.3%.

The company cited strength in Mexico and the People’s’ Republic of China, and weakness in the United Kingdom and Canada.

The unit opened two e-commerce fulfillment centers in Mexico during the quarter, and launched the Walmart Daojia delivery app in China.

For fiscal 2020, the company now expects adjusted earnings ranging from a slight decline to a slight increase compared with a prior forecast of a low-single-digit percentage decline. Walmart now expects U.S. comps to come in toward the upper end of the forecasted range of between 2.5% and 3% growth. The company reiterated its expectation for capital expenditures of $11 billion over the full year.


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