Walmart U.S. Q2 comp sales grew 9.3% and Walmart U.S. eCommerce sales grew 97%
August 18 2020 - 6:59AM
Business Wire
Q2 FY21 GAAP EPS of $2.27; Adjusted EPS of
$1.56
Company incurs incremental costs related to
COVID-19 of $1.5 billion
Walmart Inc. (NYSE: WMT):
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First-quarter highlights
- The company’s net sales and operating results were
significantly affected by a continuation of the global health
crisis. Increased demand for products across multiple categories
led to strong top-line and gross margin results.
- Total revenue was $137.7 billion, an increase of $7.4 billion,
or 5.6%. Excluding currency, total revenue would have increased
7.5% to reach $140.2 billion.
- Walmart U.S. comp sales increased 9.3%, led by strength in
general merchandise and food.
- Walmart U.S. eCommerce sales grew 97% with strong results
across all channels.
- Sam’s Club comp sales increased 13.3%. eCommerce sales grew
39%. Reduced tobacco sales negatively affected comp sales by
approximately 390 basis points. Growth in membership income was the
highest quarterly increase in more than five years. New member
count increased more than 60%.
- Walmart International net sales were $27.2 billion, a decrease
of 6.8%. Changes in currency rates negatively affected net sales by
approximately $2.4 billion. Excluding currency, net sales would
have been $29.6 billion, an increase of 1.6%. Net sales included
the effects of the government-mandated closure of the company’s
Flipkart business in India for a portion of the quarter, as well as
similar actions in markets in Africa and Central America.
- Consolidated gross profit rate increased 63 basis points
primarily as a result of a shift in the mix of sales to
higher-margin general merchandise categories, fewer markdowns and
better margins on fuel, partially offset by the carryover of
investments in price from last year. Spending associated with
stimulus payments in the U.S. positively affected sales of general
merchandise.
- Consolidated operating expenses as a percentage of net sales
increased 42 basis points, primarily as a result of incremental
expenses related to COVID-19, a business restructuring in the U.S.
and a discrete tax item. In total, these costs negatively affected
expense leverage by about 130 basis points. Underlying productivity
in stores and eCommerce remained strong.
- Consolidated operating income was $6.1 billion, an increase of
8.5%. Adjusted operating income in constant currency increased
18.6% led by strength across all operating segments, including
significantly lower losses in Walmart U.S. eCommerce.
- Adjusted EPS excludes the effects, net of tax, of an unrealized
gain of $0.89 on equity investments, a business restructuring
charge in the U.S. of $0.10 and $0.08 for a discrete tax item.
About Walmart Walmart Inc. (NYSE: WMT) helps people
around the world save money and live better - anytime and anywhere
- in retail stores, online, and through their mobile devices. Each
week, over 265 million customers and members visit approximately
11,500 stores under 56 banners in 27 countries and eCommerce
websites. With fiscal year 2020 revenue of $524 billion, Walmart
employs over 2.2 million associates worldwide. Walmart continues to
be a leader in sustainability, corporate philanthropy and
employment opportunity. Additional information about Walmart can be
found by visiting http://corporate.walmart.com, on Facebook at
http://facebook.com/walmart and on Twitter at
http://twitter.com/walmart.
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