Walmart reported a nearly 5% increase in quarterly sales on Thursday (Aug. 15), but saw unadjusted net income fall 43% in the quarter. The Bentonville-based company raised its forecast for net sales growth for the full fiscal year to 4.75% from the previous 4%.
Net income for the fiscal quarter ended July 31 was $4.501 billion, down 43% from the same period last year. Earnings per share of 56 cents were below the consensus estimate of 65 cents. However, adjusted earnings per share, which takes into account the impact of capital expenditures and corporate restructuring costs, were 67 cents.
Total revenue for the quarter was $169.335 billion, up 4.8% from the same period in the previous fiscal year and above the consensus estimate of $168.53 billion.
The company noted in its earnings report that it saw “no signs of customer churn.” The company also reported “flat to slightly positive sales for the first time in 11 quarters” in its general merchandise category.
“Our team delivered another strong quarter. They work hard every day to help our customers and members save time and money. Every part of our business is growing – and our newer businesses are diversifying our profits and strengthening the resilience of our business model,” Walmart CEO Doug McMillon said in the report.
Walmart U.S. segment revenue was $115.347 billion, up 4.1% from $110.854 billion in the same quarter of 2023. Segment operating income was $6.591 billion, up 7.8% from the same period in 2023.
International segment revenue was $29.567 billion, up 7.1% from the same period in 2023. Segment operating income was $1.36 billion, up 14.3%. Sam’s Club revenue was $22.853 billion, up 4.7% from $21.83 billion in the same period in 2023. Segment operating income was $581 million, up 11.5% from $521 million in the same period in 2023.
E-commerce sales rose 22% in the quarter, driven by in-store fulfillment and delivery. The company also said its Walmart Connect advertising business grew 30%.
Net profit for the first half of the fiscal year was $9.605 billion, up 0.4% from $9.564 billion in the same period of 2023. Total revenue for the first half of the year was $330.843 billion, up 8.4% from the same period of the previous fiscal year.
The global retailer ended the quarter with $8.879 billion in cash and cash equivalents, down from $13.971 billion at the end of the same quarter in 2023.
Walmart shares (NYSE: WMT) closed at $68.13 on Wednesday. Over the past 52 weeks, the stock price has fluctuated between $71.33 and $49.85.
