BENTONVILLE, Ark., Aug 17, 2023 – Walmart Inc. BB #:143789 announces second quarter results, including strong revenue and operating income growth of 5.7% and 6.7%, respectively.
The Company sees strength in its omnichannel model across segments with strong comp sales globally, including 6.4% for Walmart U.S. The Company raises guidance for FY24 to reflect Q2 upside, confidence in continued business momentum and ongoing customer response to its value proposition.
Second Quarter Highlights
• Consolidated revenue of $161.6 billion, up 5.7%, or 5.4% in constant currency (cc)
• Consolidated gross margin rate up 50bps on lapping elevated markdowns and supply chain costs, partially offset by ongoing mix pressure in grocery and health & wellness
• Consolidated operating expenses as a percentage of net sales grew 33bps
• Consolidated operating income up $0.5 billion, or 6.7%, adjusted operating income up 8.1%
• ROA at 5.6%; ROI at 12.8%, negatively affected by 140bps of discrete charges in Q3 & Q4 FY23
• Global advertising business grew approximately 35%
• Walmart U.S. comp sales up 6.4%; eCommerce up 24%, led by pickup & delivery
• Celebrating the 65th anniversary of Bodega Aurrera stores in Mexico
“We had another strong quarter. Around the world, our customers and members are prioritizing value and convenience. They’re shopping with us across channels — in stores, Sam’s Clubs, and they’re driving eCommerce, which was up 24% globally. Food is a strength, but we’re also encouraged by our results in general merchandise versus our expectations when we started the quarter. Our associates helped deliver increases in transaction counts and units sold, and profit is growing faster than sales. We’re in good shape with inventory, and we like our position for the back half of the year,” said Doug McMillon, President and CEO, Walmart
Walmart U.S.
• Growth in eCommerce of 24%, with strength in pickup & delivery and advertising
• Walmart Connect advertising sales grew 36%
• Sales strength led by grocery and health & wellness, while general merchandise sales declined modestly
• Gained market share in grocery with strong unit growth
• Gross profit rate increased 40 bps, partially offset by operating expense deleverage of 28 bps
• Inventory declined 8% with higher in-stock levels
Walmart International
• Strong growth in net sales cc, led by Walmex, China and Flipkart. Positive traffic across markets
• Growth in eCommerce sales of 26% with strength in store-fulfilled
• Gross margin rate declined 37 bps over last year on changes in format and channel mix
• Advertising up nearly 40%
• Operating expense leverage of 129 bps on strong growth in net sales, driving fixed cost leverage
• Operating income cc up 2.2%, impacted 20 percentage points from lapping last year’s $0.2 billion one-time
insurance benefit in Chile
Sam’s Club U.S.
• Strong comp sales, led by food and consumables, and healthcare as well as positive unit growth overall
• Gained market share in grocery and general merchandise, including apparel, home, and toys
• Growth in eCommerce of 18% led by curbside
• Strong growth in membership income, up 7.0%, with continued strength in Plus member growth and renewals
• Advertising up 33%
• Membership count increased mid single-digits with Plus penetration up 130 bps vs. last year
About Walmart
Walmart Inc. (NYSE: WMT) is a people-led, tech-powered omnichannel retailer helping people save money and live better – anytime and anywhere – in stores, online, and through their mobile devices. Each week, approximately 240 million customers and members visit more than 10,500 stores and numerous eCommerce websites in 19 countries. With fiscal year 2023 revenue of $611 billion, Walmart employs approximately 2.1 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 corporate.walmart.com, on Facebook at facebook.com/walmart, on X (formerly known as Twitter) at twitter.com/walmart, and on LinkedIn at linkedin.com/company/walmart.
Investor Relations contact: Steph Wissink – ir@walmart.com
Media Relations contact: Randy Hargrove – (800) 331-0085
