Walmart U.S. points to top-line momentum in Q2

Bentonville, Ark. – All segments of the Walmart U.S. business generated positive comps during the second quarter, with same-store sales in general merchandise rising in the low single-digit range. The general merchandise segment also experienced year-over-year price deflation in the low single-digit range on an aggregated basis. “Gained share in gen merch as expanded assortment, strong value, and delivery convenience resonates with customers; aided by strong seasonal events,” the company reported. Net sales rose 4.8% to $120.9 billion for Walmart U.S., with e-commerce sales jumping 26%. The e-commerce gain included early 50% growth in store-fulfilled delivery and a 31% boost in Walmart Connect advertising revenue. Comp rose 4.6%, with transactions (excluding fuel) up 1.5% and average ticket (excluding fuel) up 3.1%. Total like-for-like inflation inched up 1.1%. As has been the case for several quarters, share gains were led by upper-income consumers, although Walmart U.S. also improved gains across all income brackets. At the Sam’s Club U.S. division, net sales rose 3.4% to $23.6 billion. Net sales excluding fuel were up 6.0%. Sam’s e-commerce sales climbed 26%. Comp (excluding fuel) were up 5.9%. Transactions (excluding fuel) rose 3.9% and average ticket (excluding fuel) increased 2.0%. Total company revenue rose 4.8% to $177.4 billion, with global e-commerce sales growing 25%. Operating income fell 8.2% to $0.7 billion, in part due to legal and restructuring costs. Despite expecting higher prices from tariffs, Walmart Inc. raised its guidance today. It now expects fiscal year net sales to grow between 3.75% and 4.75%, up from its previous forecast of 3% to 4% growth. The company bumped its expectation for adjusted earnings per share outlook to $2.52 to $2.62, up from the earlier range of $2.50 to $2.60 per share.