Walmart Inc (NYSE: WMT) reported upbeat second-quarter results on Thursday morning, aided by strong e-commerce growth and U.S. comparable store sales.
The retail giant said U.S. e-commerce sales grew 37%, while sales at websites and stores operating at least 12 months in the U.S. rose 2.8%.
Management also upped profit guidance for the year, following the better-than-expected Q2 results. Shares of Walmart gained 6.77% to change hands at $113.39 apiece in premarket trade, helping lift Dow futures.
The stock has gained more than 14% so far this year and about 20% in the past 12 months.
WMT Earnings & Outlook
Walmart reported net income of $3.61 million, or $1.26 per share, compared with net loss of $861.0 million, or $0.29 per share in the earlier-year period. Excluding non-recurring costs, the company earned $1.27 per share, surpassing the $1.22 figure that analysts surveyed by Refinitiv had been expecting.
Companywide revenue came to $130.38 billion, representing an increase of $2.3 billion, or 1.8% from $128.03 billion in the same period last year. On average, analysts polled by Refinitiv had called for revenue of $130.11 billion.
U.S. comparable store sales rose 2.8%, thanks in part to strong grocery sales and some price hikes. Analysts had forecast U.S. comparable store sales of 2.1% during the quarter.
For the full year, Walmart expects adjusted EPS to either increase or decrease slightly compared with its previous guidance of a low single-digit decline, including Flipkart. U.S. comparable-store sales are now expected to be at the high end of its earlier guided range of 2.5% to 3%.
Walmart CEO Comments
“From a performance point of view, we’re pleased with the strength we see in the business. Customers are responding to the improvements we’re making, the productivity loop is working, and we’re gaining market share. We’re on track to exceed our original earnings expectations for the year, and that’s possible because of the work our associates do every day,” Walmart chief executive officer Doug McMillon said in the company’s earnings statement.
Walmart Inc Profile
America’s largest retailer by sales, Walmart operates over 11,300 stores under 58 banners, selling a variety of general merchandise and grocery items. Its home market accounted for 76% of sales in fiscal 2019, with Mexico and Central America (6%), the United Kingdom (6%), and Canada (4%) its largest external markets.
In the United States, around 56% of sales come from grocery, 33% from general merchandise, and 11% from health and wellness items. The company operates several e-commerce properties apart from its eponymous site, including Flipkart, Jet.com, and shoes.com (it also owns a roughly 10% stake in Chinese online retailer JD.com). Combined, e-commerce accounted for about 5% of fiscal 2019 sales. – Warrior Trading News