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BENTONVILLE, Ark. — Walmart's second-quarter results beat expectations, as the retailer reported strong growth in revenue and operating income.
Walmart's consolidated revenue for the quarter ended July 31 increased 4.8%, to $169.3 billion. Operating income grew faster — up 8.5% — and global eCommerce increased by 21%.
"Each part of our business is growing – store and club sales are up, eCommerce is compounding as we layer on pickup and even faster growth in delivery as our speed improves," Walmart president and CEO Doug McMillon said. "Our newer businesses like marketplace, advertising, and membership, are also contributing, diversifying our profits and reinforcing the resilience of our business model.”
Comparable store sales were up 4.2% for the Walmart U.S. business, and 5.2% (excluding fuel) for Sam's Club.
Walmart notes that it is not seeing a falloff in consumer spending, with all months of the quarter consistent and no step down in July. The retailer is aggressively leading pricing down, with 7,200 rollbacks in the second quarter, including a 35% increase in the number of rollbacks in food. And Walmart noted that it is seeing promising signs in general merchandise, with flattish to very slightly positive sales for the first time in 11 quarters.
Looking ahead, the company issued guidance for the third quarter and raised its outlook for the full year. For the third quarter, net sales are expected to grow by 3.25% to 4.25%, and operating income is expected to increase by 3.0% to 4.5% in constant currency. For the full year, net sales are expected to grow by 3.75% to 4.75% and adjusted operating income is expected to advance by 6.5% to 8.0% in constant currency.
