Walmart Reports Q2 Financials With Net Gains and A Grocery Boost
BENTONVILLE, AR - It goes without saying (but, I must) that the health of the grocery business has been impacted in a number of ways by the global health crisis we are experiencing today. The ups and downs are felt financially and culturally with some companies rising to meet its goals for success in a host of different ways. Walmart is one organization tracking its success this month with healthy earnings nearly across the board.
“I want to give a big thank you to our associates for their tireless efforts during these unprecedented times,” Doug McMillon President and CEO stated when reflecting on the recent financial report. “We also appreciate the trust and confidence of our customers. We remain focused on serving them well now and expanding our set of global capabilities to serve them well in the future.”
Total revenue increased $7.4 billion, or 5.6 percent, to $137.7 billion and Walmart U.S. comp sales also increased 9.3 percent, propelled by strength in general merchandise and food. According to a press release, increased demand for products across multiple categories led to strong top-line and gross margin results.
Here are some additional highlights straight from the retail juggernaut itself:
- Walmart U.S. e-commerce sales grew 97 percent with strong results across all channels
- Sam’s Club comp sales increased 13.3 percent. e-commerce sales grew 39 percent. Growth in membership income was the highest quarterly increase in more than five years. New member count increased more than 60 percent
- Walmart International net sales decreased 6.8 percent to $27.2 billion. Net sales included the effects of the government-mandated closure of the company’s Flipkart business in India for a portion of the quarter, as well as similar actions in markets in Africa and Central America
- Consolidated operating expenses as a percentage of net sales increased 42 basis points, primarily as a result of incremental expenses related to COVID-19, a business restructuring in the U.S. and a discrete tax item
Additionally, McMillon teased the launch of the subscription-based service Walmart+ which the retailer confirmed earlier this year. As CNBC reports, it is expected to rival Amazon Prime with perks aimed at driving sales and loyalty. He also acknowledged the buzz around the program, as it will focus on the customer experience with benefits that include convenient pickup and delivery, the source also added. McMillon did not say when Walmart+ will launch and what it will cost.
It is a brave new world we are all living in, and as the impact of the challenges and opportunities of the day surface, we will keep you updated at AndNowUKnow.