Walmart Stores Inc. recently released its Q2 FY24 results showing continued tailwinds for the company. Quarterly revenue was $161.1B, +5.4%. Operating income was $7.3B, +8.1%, thus outpacing sales growth.
Walmart Stores US comparable store sales up +5.4% driven by transactions increasing +2.9% and average basket increasing +3.4% over last year. Walmart continued to grow its market share in grocery with all income brackets preferring Walmart’s Everyday Low Price guarantee during periods of inflation.
Grocery saw sales growth in the high single-digits with market share gains and a 40 bps improvement in private brand sales. Even with grocery inflation in low-20% on a two-year stack average, Walmart increased the number of units sold. Consumables saw similar gains in both pet and personal care, driven largely by inflation.
Health and Wellness realized growth in the high-teens with General Merchandise categories growing in the low single-digits. GMs weakest categories were apparel, home, and sporting goods.
One of the big winners for GM was Back to School, the ever-important midyear trip driver that serves as a bellwether for the coming holiday season.
Ecommerce sales grew by +24%, accounting for 15% of company sales. Growth was driven by store-fulfilled pick up and a 36% growth in Walmart Connect advertising revenue.
Inventory is continuing to improve, showing declines of 8% year-over-year.
Walmart is predicting 3% revenue growth globally in Q3 and 4%-4.5% for the full fiscal year.
For the complete report, visit Walmart Releases Q2 FY24 Earnings.
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