Walmart(US:WMT)2024-08-15 10:59Revenue and Sales Growth - Consolidated revenue increased by 4.8% to $169.3 billion, with operating income growing 8.5% to $0.6 billion[2] - Walmart U.S. comp sales increased by 4.2%, with eCommerce contributing ~300 bps to comp sales growth[6][7] - Net sales increased by 4.7% to $167.767 billion for the three months ended July 31, 2024, compared to $160.280 billion in the same period in 2023[20] - Total revenues increased by 4.8% to $169.335 billion for the three months ended July 31, 2024, compared to $161.632 billion in 2023[20] - Walmart U.S. net sales increased by 4.1% to $115.35 billion for the three months ended July 31, 2024, compared to $110.85 billion in the same period in 2023[27] - Walmart International net sales grew by 7.1% to $29.57 billion for the three months ended July 31, 2024, compared to $27.60 billion in the same period in 2023[27] - Sam's Club net sales increased by 4.7% to $22.85 billion for the three months ended July 31, 2024, compared to $21.83 billion in the same period in 2023[27] - Total revenues for the three months ended July 31, 2024, were $29.938 billion, a 7.1% increase year-over-year[32] - Consolidated total revenues for the six months ended July 31, 2024, reached $169.335 billion, up 4.8% compared to the prior year[32] eCommerce Performance - Global eCommerce sales grew 21%, driven by store-fulfilled pickup & delivery and marketplace[2] - Walmart International eCommerce sales grew 18%, with advertising business up 23% led by Flipkart and Walmex[9] - Sam's Club U.S. eCommerce sales grew 22%, with membership income up 14.4% and total membership reaching a record high[11] Advertising Business Growth - Global advertising business grew 26%, including 30% growth for Walmart Connect in the U.S.[2] Inventory Management - Inventory decreased by 2.0% globally, with Walmart U.S. inventory down 2.6% while maintaining healthy in-stock levels[2][7] Financial Guidance - Q3 guidance: Net sales expected to grow 3.25% to 4.25% and operating income to grow 3.0% to 4.5% in constant currency[1][14] - FY25 guidance updated: Net sales expected to grow 3.75% to 4.75% and adjusted operating income to grow 6.5% to 8.0% in constant currency[16] Earnings and Income - Adjusted EPS for Q2 was $0.67, excluding a net loss of $0.11 on equity and other investments[2] - Membership and other income grew by 16.0% to $1.568 billion for the three months ended July 31, 2024, compared to $1.352 billion in 2023[20] - Operating income rose by 8.5% to $7.940 billion for the three months ended July 31, 2024, compared to $7.316 billion in 2023[20] - Consolidated net income attributable to Walmart decreased by 43.0% to $4.501 billion for the three months ended July 31, 2024, compared to $7.891 billion in 2023[20] - Basic net income per common share attributable to Walmart declined by 42.9% to $0.56 for the three months ended July 31, 2024, compared to $0.98 in 2023[20] - Consolidated operating income rose by 8.5% to $7.94 billion for the three months ended July 31, 2024, compared to $7.32 billion in the same period in 2023[27] - Operating income for the three months ended July 31, 2024, was $1.360 billion, a 14.3% increase year-over-year[32] - Adjusted operating income for the six months ended July 31, 2024, was $15.036 billion, a 10.2% increase compared to the prior year[35] - Adjusted diluted earnings per share (Adjusted EPS) for the three months ended July 31, 2024, was $0.67, up from the reported EPS of $0.56[40] - Adjusted EPS for the six months ended July 31, 2024, was $1.27, compared to the reported EPS of $1.19[40] - Diluted earnings per share for the three months ended July 31, 2023 was $0.97, with adjusted EPS at $0.61 after adjustments[42] - Diluted earnings per share for the six months ended July 31, 2023 was $1.18, with adjusted EPS at $1.10 after adjustments[42] Expenses and Costs - Cost of sales increased by 4.1% to $126.810 billion for the three months ended July 31, 2024, compared to $121.850 billion in 2023[20] - Operating, selling, general, and administrative expenses rose by 6.5% to $34.585 billion for the three months ended July 31, 2024, compared to $32.466 billion in 2023[20] - Interest, net increased by 14.4% to $565 million for the three months ended July 31, 2024, compared to $494 million in 2023[20] - Finance lease obligations interest expense grew by 23.2% to $122 million for the three months ended July 31, 2024, compared to $99 million in 2023[20] - Capital expenditures for the six months ended July 31, 2024, increased by $1.291 billion to $10.507 billion[37] Cash Flow and Financial Position - Net cash provided by operating activities for the six months ended July 31, 2024, was $16.36 billion, down from $18.20 billion in the same period in 2023[24] - Free cash flow for the six months ended July 31, 2024, was $5.850 billion, a decrease of $3.135 billion compared to the same period in the prior year[37] - Net cash provided by operating activities for the six months ended July 31, 2024, was $16.357 billion, a decrease of $1.844 billion compared to the prior year[37] - Walmart's total assets increased to $254.44 billion as of July 31, 2024, compared to $252.40 billion in January 2024 and $255.12 billion in July 2023[22] - Consolidated net income for the six months ended July 31, 2024, was $10.02 billion, slightly up from $9.95 billion in the same period in 2023[24] Comparable Sales Performance - Walmart U.S. comparable sales with fuel increased by 4.2% for the 13 weeks ended July 26, 2024, compared to 6.1% in the same period in 2023[28] - Sam's Club comparable sales with fuel increased by 4.6% for the 13 weeks ended July 26, 2024, compared to a decline of 0.2% in the same period in 2023[28] - Total U.S. comparable sales with fuel increased by 4.3% for the 13 weeks ended July 26, 2024, compared to 5.0% in the same period in 2023[28] Tax and Investment Metrics - The reported effective tax rate was 24.9% for the three months and 25.8% for the six months ended July 31, 2023[42] - ROA increased to 6.4% for the trailing twelve months ended July 31, 2024, up from 5.6% in the same period in 2023[44] - ROI increased to 15.1% for the trailing twelve months ended July 31, 2024, up from 12.8% in the same period in 2023[44] - Consolidated net income for the trailing twelve months ended July 31, 2024 was $16,339 million, up from $13,991 million in 2023[47] - Operating income for the trailing twelve months ended July 31, 2024 was $28,237 million, up from $21,812 million in 2023[48] - Average total assets for the trailing twelve months ended July 31, 2024 were $254,781 million, compared to $251,160 million in 2023[48] - Average invested capital for the trailing twelve months ended July 31, 2024 was $287,764 million, compared to $280,156 million in 2023[48] Currency Impact - Currency exchange rate fluctuations positively impacted total revenues by $324 million for the three months ended July 31, 2024[32]