Walmart underlines global strength with strong Q2, FY forecast upgrade | Progresiv
Walmart has highlighted why it remains the world’s largest retailer, reporting a strong set of results for its fiscal second quarter, which prompted it to raise its forecasts for the full year. For the three months to 31 July, net sales rose by 1.8% to 129.4 billion dollars on a reported basis and by 2.9% on a constant-currency basis. Operating profit was down 2.4% on a constant-currency basis (-2.9% reported), which was better than expected, while it swung to a net profit of 3.7 billion dollars from a loss of 727 million dollars last year. 
Walmart was boosted by improved results in its core US market, where sales rose by 2.9% to 85.2 billion dollars, and like-for-like sales (excl. fuel) were up 2.8%.
This marked the 20th straight quarter that Walmart has grown sales in its home market and CEO Doug McMillon noted: “Customers are responding to the improvements we’re making, the productivity loop is working, and we’re gaining market share.” McMillon added that the market share growth was in key categories, including food, consumables, health & wellness, and toys.
The domestic results were boosted by increased grocery delivery and pickup options, as well as a 37% jump in online sales.
Meanwhile, Walmart’s International sales rose by 3.3% to 30.4 billion dollars on a constant-currency basis (-1.1% reported), with nine of 10 markets reporting LFL sales growth. The company reported improved results in the UK, Walmex delivered strong growth, and Walmart said it was “pleased” with its progress in China.
The results prompted Walmart to say it expects full-year adjusted operating profit to increase by a low- to mid-single percentage, up from its previous forecast of a low single-digit percentage increase. It also expects adjusted earnings per share to grow by a mid- to high-single digit percentage, from a forecast of low- to mid-single-digit percentage. However, its International unit is now expected to report sales growth of 3%-4% on a constant-currency basis, down from a forecast of around 5% growth. (www.kamcity.com)
