Walmart (WMT) reported another solid quarter as its business proves resilient in the face of demanding consumers and stubborn inflation.
Second-quarter revenue rose 4.8% to $169.34 billion, compared to expectations of $168.46 billion. Adjusted earnings also beat estimates at $0.67, up 9.8% year over year.
“Every part of the business is growing,” CEO Doug McMillon said in the press release. “Store and club sales are increasing, e-commerce is growing as we add pickup, and delivery is growing even faster as our speed increases.”
He added that the online marketplace, membership model and advertising business (which grew 26 percent globally) helped diversify the retailer’s profits.
In the U.S., comparable-store sales rose 4.3 percent, including 4.2 percent growth at Walmart and 5.2 percent at Sam’s Club, according to Bloomberg estimates.
The food retail sector remains a key business and a key factor in higher customer frequency and higher receipt amounts.
“Food, consumer staples and convenience goods … will continue to be the main driver,” Joe Feldman of Telsey Advisory Group told Yahoo Finance by phone before the earnings release. “People are looking for value, they’re trying to stretch their money.”
Walmart’s US business said it continued to gain market share across all income groups, including high-income households, thanks to its “affordable and convenient offering.”
Grocery makes up about 60 percent of Walmart’s U.S. sales. Last quarter, the company introduced a private label called Bettergoods, which offers healthier, higher-quality products for $5.
CFRA analyst Arun Sundaram said the retailer is trying to retain the newly acquired higher-income households by telling customers: “Hey! This is not the Walmart of 10-15 years ago.”
“Remember that Walmart primarily sells groceries and other household products and is gaining market share, so the company’s experience will be a little different from other retailers,” UBS analyst Michael Lasser told Yahoo Finance.
In its international business, the company reported a 7.1% increase in sales as it expanded its number of stores and its online business.
Result breakdown
Here’s what Walmart reported for the second quarter of its fiscal 2025 compared to Bloomberg estimates:
Revenue: 169.34 billion US dollars compared to 168.46 billion US dollars
Adjusted earnings per share: $0.67 versus $0.65
Total like-for-like sales growth in the US: 4.30% versus 3.41%
Sales growth in comparable Walmart stores in the US: 4.20% versus 3.43%
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Traffic: 3.60% versus 2.82%
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Ticket growth: 0.60% versus 1.27%
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E-commerce growth: 3.00% versus 2.10%
Sales growth in Sam’s Club stores in the US: 5.20% versus 3.90%
For fiscal 2025, Walmart now expects revenue to increase between 3.75% and 4.75% and adjusted earnings per share to increase between $2.35 and $2.43. The previous forecast called for net sales to increase between 3% and 4% and adjusted earnings per share to increase in the range of $2.23 to $2.37.
Walmart shares have risen 27.5% so far this year, compared with a 14% gain for the S&P 500 (^GSPC).
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Brooke DiPalma is a senior reporter at Yahoo Finance. Follow her on Twitter at @Subscribe or email her at [email protected].
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