Walmart Inc. (NYSE: WMT) has announced its second quarter results, presenting impressive increases in both sales and operating income. Sales grew by a remarkable 5.7%, while operating profit increased by an impressive 6.7%. The company emphasizes the strength of its omnichannel model, which is having a positive impact in all business areas. This performance is underpinned by strong sales figures recorded globally, including an impressive 6.4% increase for Walmart U.S. These positive results lead to an adjustment in guidance for fiscal 2024, which the company is now more optimistic about.
In the second quarter, Walmart reported consolidated sales of $161.6 billion, up 5.7% year-over-year. This positive development is also reflected in the company’s gross margin, which increased by 0.5%. This increase resulted from the expiration of increased depreciation and lower supply chain costs, with some back pressure from ongoing challenges in food and health and wellness.
Walmart’s operating expenses as a percentage of net sales increased 33 basis points, while operating income increased $0.5 billion, or 6.7%. Another encouraging aspect can be seen in the return on assets (ROA) of 5.6% and the return on investment (ROI) of 12.8%, although 1.4% was impacted due to separate charges in the penultimate and final quarters.
Walmart’s global advertising business experienced remarkable growth of around 35%, underlining the strength of the brand and its appeal to customers. Also of particular note was the increase in Walmart U.S. sales figures, which rose by 6.4%, while the e-commerce sector shone with growth of 24% – here, pick-up and delivery services in particular led to this pleasing development.
Walmart is also celebrating the 65th anniversary of its Bodega Aurrera stores in Mexico, highlighting the company’s long and successful presence in the international market.
Overall, the second quarter results underscore Walmart’s positive business performance and the promising growth prospects the company sees for the future. The impressive numbers confirm Walmart’s strategic direction in an ever-changing retail landscape.
