Walmart beat market expectations for its second quarter 2022 with sales up in the U.S. and its international division, which includes Canada. Total revenue was U.S. $152.9 billion, up 8.4 per cent.
Walmart U.S. comp sales grew 6.5 per cent, as the company continues to gain market share in grocery, and e-commerce increased 12 per cent.
Walmart International net sales were $24.4 billion, an increase of $1.3 billion, or 5.7 per cent, negatively affected by $1.0 billion from currency fluctuations. Double-digit comps in three largest markets of Mexico, Canada, and China. Global advertising business grew nearly 30 per cent, led by Walmart Connect in the U.S. and Flipkart advertising.
“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,” says Doug McMillon, Walmart president and CEO. “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.”
While Walmart's results surpassed analyst expectations, the company reiterated its profit warning from the previous month, noting that shoppers impacted by inflation were buying less high-margin merchandise like apparel as they spent more on necessities, like food. Walmart says it expects these spending patterns to continue."