Walmart has reported earnings and sales results for the fiscal second quarter ended July 31. Walmart Inc. U.S business saw same-store sales increase, beating analysts’ estimates, as shoppers begin to return to stores, but its international division, which includes Walmart Canada, witnessed a 15.2 per cent decline in net sales.
Total revenue was US $141.0 billion, up 2.4 per cent, negatively affected by approximately $8.9 billion related to divestitures.
“We had another strong quarter in every part of our business. Our global e-commerce sales are on track to reach US $75 billion by the end of the year, further strengthening our position as a leader in omnichannel,” says Doug McMillon, president and CEO of Walmart Inc. “We grew market share in U.S. grocery, added thousands of new sellers to our marketplace, rapidly grew advertising in businesses around the world, and we’re finding innovative ways to commercialize our data and build technology.”
Sales at Walmart's U.S. stores open at least a year rose 5.2 per cent, excluding fuel, in the second quarter ended July 31. Analysts had estimated a growth of 3.69 per cent.
The world's biggest retailer has also been given a boost by stimulus checks handed out during the pandemic, and most recently from the U.S. government’s advance child tax credits. Walmart U.S. grew its market share in grocery with comp transactions reported as “strong” at 6.1 per cent, led by stores.
Walmart said it now expects fiscal 2022 U.S. same-store sales to be up 5 per cent to 6 per cent, compared with the low single-digit growth it had previously forecast. The outlook accounts for continued strength in the U.S. economy and no significant additional government stimulus for the rest of the year.
Walmart International net sales were US $23.0 billion, a decrease of US $4.1 billion. The company says sales were negatively affected by approximately $8.9 billion related to divestitures, however, changes in currency exchange rates positively affected net sales by about US $2.4 billion.