Shoppers flocked to Walmart in the second quarter, driving up sales across all channels including brick-and-mortar stores, Sam’s Clubs and online, said Doug McMillon, the retailer’s president and CEO.
“We had another strong quarter. Around the world, our customers and members are prioritizing value and convenience,” he said in a statement announcing the company’s quarterly results. He also said that shoppers are driving Walmart’s e-commerce business, which grew 24% globally, led by pickup and delivery services.
“Food is a strength, but we’re also encouraged by our results in general merchandise versus our expectations when we started the quarter,” the executive said.
McMillon said that inventory is in "good shape," and that the company likes its position for the rest of the year.
For its second quarter ended July 31, Walmart reported sales up 5.7% to $161.6 billion, and adjusted earnings growth of 4% to $1.84 per share. Both of these beat analysts’ expectations and were fueled by U.S. comparable-store sales surging 6.4% as well as margins expanding.
As a result of a strong performance in the first half of 2023, Walmart raised its full-year outlook. The retailer said it expects revenue growth of 4% to 4.5% and adjusted earnings per share of $6.36-$6.46, compared with its previous outlook of revenue growth of 3.5% and adjusted earnings per share of $6.10-$6.20.
“Our customers and members are resilient. They're looking for value, and they trust us to be there for them,” McMillon said on an Aug. 17 conference call to discuss the results. “They're looking for value, and they trust us to be there for them.”
At its Sam’s Club U.S. unit, the company reported strong comparable sales, led by food and consumables as well as healthcare. The unit had strong growth overall, it said.
Sam’s gained market share in the grocery and general merchandise markets, including apparel, home and toys. The store’s curbside business increased growth in eCommerce. It also saw membership income climb 7%, with continued strength in Plus member growth and renewals, the company said.
Meanwhile, Home Depot posted results earlier in the week, underscoring strength in consumer spending, as Kiplinger previously reported. The home improvement retailer reported higher-than-expected second-quarter earnings of $4.65 per share on $42.9 billion in revenue.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
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