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Walmart Closes Q2 2017 with Positive Growth

Walmart Closes Q2 2017 with Positive Growth


BENTONVILLE, AR
Thursday, August 18th, 2016

Walmart beat the street yesterday, announcing higher results than expected in both sales and earnings for the second quarter of its fiscal year 2017.

Doug McMillon, President and CEO, Walmart“We had a strong quarter, with adjusted earnings per share of $1.07. Excluding the $2.7 billion currency impact, we delivered total revenue of $123.6 billion, an increase of 2.8 percent over last year,” Doug McMillon, President & CEO, said on an earning call in regards to the report. McMilllon added that this was the company’s 8th consecutive quarter of positive comp sales and 7th consecutive quarter of positive traffic.

When it comes to growth in food offerings, McMillon credited grocery with much of the positive return seen in ithe company’s e-commerce.

“We’re also showing progress in e-commerce [...]. This was primarily due to growth in our marketplace offering in the U.S., the continued rollout of online grocery and growth of pick-up in stores and clubs,” he stated on the call.

Thought the company did not comment on the slimming of stores to offer the price-matching program, McMillon did say, “We’re committed to providing Everyday Low Prices, using data and analytics to better serve our customers both through stores and e-commerce.”

Financial highlights for the quarter included:

  • Total revenue was $120.9 billion, an increase of 0.5%. On a constant currency basis, total revenue was $123.6 billion, an increase of 2.8%.
  • Walmart U.S. delivered positive comp sales for the eighth consecutive quarter, up 1.6%, driven by the seventh consecutive quarter of positive traffic, up 1.2%. Neighborhood Market comp sales increased approximately 6.5%.
  • Net sales at Walmart International were $28.6 billion. Excluding currency impacts, net sales were $31.3 billion, an increase of 2.2%.
  • Globally, on a constant currency basis, e-commerce sales and GMV increased 11.8% and 13.0%, respectively, representing an acceleration from the first quarter.

Credited to Google FinanceAs for what’s to come, it looks like even more focus on growing its online presence is in the cards.

“We remain focused on building e-commerce capabilities globally and executing our omni-channel plan, as evidenced by our recent alliance with JD.com in China and agreement to acquire Jet.com in the U.S. Walmart is uniquely positioned to provide customers with a seamless shopping experience where we save them time and money," McMillon said.

Does this also include bolstering of its grocery offerings? Deli Market News will continue to report on all the latest developments in the retail circuit.

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