Walmart Beat Expectations, Excels On Grocery and E-Commerce
BENTONVILLE, AR - Walmart announced the results of its second quarter fiscal 2019, noting robust revenue growth—well in excess of analysts' expectations—and touting the success of grocery and e-commerce initiatives.
“Thanks to the hard work of our associates, we had a great quarter with strong results and momentum across the business,” said Doug McMillon, President and CEO. “We’re pleased with how customers are responding to the way we’re leveraging stores and e-commerce to make shopping faster and more convenient. We’re continuing to aggressively roll out grocery pickup and delivery in the U.S., and we recently announced expanded omni-channel initiatives in China and Mexico. Customers have choices, and we’re making it easier than ever for them to choose Walmart.”
The company noted the following highlights for the quarter:
- Total revenue was $128.0 billion, an increase of $4.7 billion, or 3.8%. Excluding currency, total revenue was $127.8 billion, an increase of $4.4 billion, or 3.6%
- Walmart U.S. comp sales increased 4.5%, the strongest growth in more than ten years led by the performance of grocery, apparel, and seasonal. Strong comp sales were supported by traffic and ticket growth as each exceeded 2.0%
- Walmart U.S. omni-channel saw significant progress with an expanded online assortment, including 1,100 popular new brands. Grocery pickup is now in more than 1,800 locations, and the company is on track to reach about 40% of the U.S. population by year-end with grocery delivery
- Sam's Club comp sales increased 5.0%, the strongest growth in six years
- Net sales at Walmart International were $29.5 billion, an increase of 4.0%. Excluding currency, net sales were $29.2 billion, an increase of 3.1%. Comp sales were positive in the four largest markets
The New York Times reported that Walmart’s revenues exceeded Wall Street expectations and saw the company’s erstwhile flagging stock soar this morning. And Seeking Alpha noted that Walmart’s stellar performance has had reverberations throughout the retail sector—boosting even rival retailers like Target and Costco.
Could a rising retail tide be lifting all boats? AndNowUKnow will continue to report.