Walmart U.S. grew comp sales 6.5%, including mid-teens in food, and eCommerce up 12%

Rhea-AI Summary

Walmart Inc. (NYSE: WMT) reported Q2 FY23 earnings with a GAAP EPS of $1.88 and an Adjusted EPS of $1.77. The company achieved a total revenue of $152.9 billion, marking an 8.4% increase. Comp sales for Walmart U.S. grew 6.5%, with eCommerce growth at 12%. Walmart International net sales rose to $24.4 billion, despite a $1.0 billion negative impact from currency fluctuations. A notable decline in consolidated gross profit rate was recorded at 132 basis points due to markdowns.

Positive

• Total revenue increased to $152.9 billion, up 8.4%.
• Walmart U.S. comp sales grew by 6.5%.
• E-commerce sales grew 12%.
• Sam's Club comp sales rose by 9.5%, with membership income increasing 8.9%.
• Global advertising business grew nearly 30%, led by Walmart Connect.

Negative

• Consolidated gross profit rate declined by 132 basis points.
• Consolidated operating income decreased by 6.8%, despite positive effects from insurance settlements.

Q2 FY23 GAAP EPS of $1.88; Adjusted EPS of $1.77

Company maintains outlook for back-half of FY23

BENTONVILLE, Ark.--(BUSINESS WIRE)--

Walmart Inc. (NYSE: WMT):

Second-quarter highlights:

• Company delivered strong top-line growth globally, partially driven by inflation. Total revenue was $152.9 billion, up 8.4%, or 9.1% in constant currency.
• Walmart U.S. comp sales grew 6.5% and 11.7% on a two-year stack. eCommerce growth was 12% and 18% on a two-year stack. Continued to gain market share in grocery.
• Sam’s Club comp sales increased 9.5%, and 17.2% on a two-year stack. Membership income increased 8.9% with member count at an all-time high.
• Walmart International net sales were $24.4 billion, an increase of $1.3 billion, or 5.7%, 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%, led by Walmart Connect in the U.S. and Flipkart advertising.
• Consolidated gross profit rate declined 132 basis points, primarily due to markdowns and mix of sales in the U.S., and an inflation-related LIFO charge at Sam’s Club.
• Consolidated operating expenses as a percentage of net sales decreased 45 basis points, primarily due to strong sales growth partially offset by wage investments.
• Consolidated operating income was $6.9 billion, a decrease of 6.8%, positively affected by $173 million from an insurance settlement for Walmart Chile.
• GAAP and Adjusted EPS include a $0.05 impact from the Walmart Chile insurance settlement discussed above, as well as a $0.05 impact from a dividend related to the Company’s equity investment in JD.com.

The company will hold a live conference call with the Investment Community at 7 a.m. CDT Tuesday, Aug. 16, 2022, to discuss the company’s second quarter earnings results for fiscal year 2023. The event will be webcast live and is accessible by visiting https://corporate.walmart.com/newsroom/financial-events and selecting the Second Quarter Earnings Release event. The webcast will be archived and available beginning at approximately noon CDT Aug. 16.

About Walmart

Walmart Inc. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores, online, and through their mobile devices. Each week, approximately 230 million customers and members visit more than 10,500 stores and numerous eCommerce websites under 46 banners in 24 countries. With fiscal year 2022 revenue of $573 billion, Walmart employs approximately 2.3 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting https://corporate.walmart.com, on Facebook at https://facebook.com/walmart and on Twitter at https://twitter.com/walmart.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220815005707/en/

Investor Relations Contacts

Dan Binder, CFA

Sr. Vice President: Global Treasurer, Tax, Claims Administration, & Investor Relations

Daniel.Binder@walmart.com

Kary Brunner

Sr. Director II, Investor Relations

Kary.Brunner@walmart.com

Media Relations Contact

Randy Hargrove

Sr. Director, Global Communications

800-331-0085

Source: Walmart Inc.

FAQ

What were Walmart's Q2 FY23 earnings per share?

Walmart reported a GAAP EPS of $1.88 and an Adjusted EPS of $1.77 for Q2 FY23.

How much revenue did Walmart generate in Q2 FY23?

Walmart generated total revenue of $152.9 billion in Q2 FY23, an 8.4% increase year-over-year.

What was the growth rate of Walmart U.S. comp sales in Q2 FY23?

Walmart U.S. comp sales grew by 6.5% in Q2 FY23.

Did Walmart's global advertising business grow in Q2 FY23?

Yes, Walmart's global advertising business grew nearly 30% in Q2 FY23.

What was the impact of currency fluctuations on Walmart International sales?

Walmart International net sales were negatively affected by $1.0 billion due to currency fluctuations.