Walmart: maintains outlook for back-half of FY-2023

Bentonville / AR. (wama) Walmart Inc. published its financial statements for the second quarter of fiscal 2023, that ended in Bentonville on July 31, 2022. President and CEO Doug McMillon: «We’re pleased to see more customers choosing Walmart during this inflationary period, and we’re working hard to support them as they prioritize their spending. The actions we’ve taken to improve inventory levels in the U.S., along with a heavier mix of sales in grocery put pressure on profit margin for Q2 and our outlook for the year. We made good progress throughout the quarter operationally to improve costs in our supply chain, and that work is ongoing. We continue to build on our strategy to expand our digital businesses, including the continued strength we see in our international markets.»

Second Quarter Highlights

  • Company delivered strong top-line growth globally, partially driven by inflation. Total revenue was USD 152.9 billion, up 8.4 percent, or 9.1 percent in constant currency.
  • Walmart U.S. comp sales grew 6.5 percent and 11.7 percent on a two-year stack. eCommerce growth was 12 percent and 18 percent on a two-year stack. Continued to gain market share in grocery.
  • Sam’s Club comp sales increased 9.5 percent, and 17.2 percent on a two-year stack. Membership income increased 8.9 percent with member count at an all-time high.
  • Walmart International net sales were USD 24.4 billion, an increase of USD 1.3 billion, or 5.7 percent, negatively affected by USD 1.0 billion from currency fluctuations. Double-digit comps in three largest markets of Mexico, Canada, and China.
  • Global advertising business grew nearly 30 percent, led by Walmart Connect in the U.S. and Flipkart advertising.
  • Consolidated gross profit rate declined 132 basis points, primarily due to markdowns and mix of sales in the U.S., and an inflation-related LIFO charge at Sam’s Club.
  • Consolidated operating expenses as a percentage of net sales decreased 45 basis points, primarily due to strong sales growth partially offset by wage investments.
  • Consolidated operating income was USD 6.9 billion, a decrease of 6.8 percent, positively affected by USD 173 million from an insurance settlement for Walmart Chile.
  • GAAP and Adjusted EPS include a USD 0.05 impact from the Walmart Chile insurance settlement discussed above, as well as a USD 0.05 impact from a dividend related to the Company’s equity investment in JD.com.

For additional information please read the Company’s PDF file below (388 KB):

20220816-WALMART-Q2-2023
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