Walmart ( WMT ) posted another solid quarter as its business proved resilient against savvy consumers and sticky inflation.
In Q2, revenue rose 4.8% to $169.34 billion compared to an expected $168.46 billion. Adjusted earnings beat estimates of $0.67, a 9.8% year-over-year increase.
“Every part of the business is growing,” CEO Doug McMillan said in the release. “Store and club sales are up, e-commerce is picking up as we layer pick-up and delivery will grow even faster as our speed improves.”
He said its online marketplace, membership model and advertising business (which grew 26% globally) helped diversify the retailer’s profits.
U.S. same-store sales rose 4.3%, including a 4.2% increase at its namesake Walmart business and a 5.2% increase at Sam’s Club, according to Bloomberg estimates.
Grocery remains a core business, a major driver of high footfall and ticket volume.
“Grocery, consumer staples and essentials … will still be a key driver,” Joe Feldman of Telsey Advisory Group told Yahoo Finance by phone ahead of the results. “People are looking for value, people are trying to stretch their dollars.”
In the Walmart US business, the company said it continues to gain share across all income segments, including high-income households, because of its “value convenience proposition.”
Grocery accounts for about 60% of Walmart’s US sales. Last quarter, it launched a private label brand Best stuffIt offers healthy, high-quality products for $5.
CFRA analyst Arun Sundaram says the retailer is targeting higher-income households by making shoppers think, “Hey! This isn’t the Walmart of 10-15 years ago.”
“Keep in mind that Walmart sells mostly groceries and other household items, and it’s gaining market share, so it’s going to be a little bit different than what other retailers are experiencing,” UBS analyst Michael Lazar told Yahoo Finance.
Its international business saw sales grow by 7.1% as it increased the number of stores and its online business.
Revenue breakdown
Here’s what Walmart reported for its fiscal 2025 second quarter, compared to Bloomberg estimates:
Revenue: $169.34 billion and $168.46 billion
Adjusted earnings per share: $0.67 and $0.65
Overall same-store US sales growth: 4.30% and 3.41%
Walmart US Same Store Sales Growth: 4.20% and 3.43%
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Transportation: 3.60% and 2.82%
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Ticket Development: 0.60% and 1.27%
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E-Commerce Growth: 3.00% and 2.10%
Sam’s Club US Same Store Sales Growth: 5.20% and 3.90%
For its 2025 fiscal year, Walmart now expects sales to grow 3.75% to 4.75%, with adjusted EPS coming in between $2.35 and $2.43. Compared to prior guidance, net sales rose 3% to 4% and EPS was adjusted to $2.23 to $2.37.
Shares of Walmart are up 27.5% so far this year, compared with a 14% gain for the S&P 500 (^GSPC).
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Brooke DePalma is a senior reporter at Yahoo Finance. Follow her on Twitter at @Brooke DePalma Or send an email to [email protected].
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