US retailer Walmart's revenue soars 5.7% in Q2 FY24

The consolidated operating expenses also grew by 33 basis points as a percentage of net sales, with consolidated operating income up by $0.5 billion, or 6.7 per cent YoY. Adjusted operating income showed an increase of 8.1 per cent, Walmart said in a press release.

Walmart US witnessed a growth of 24 per cent YoY in e-commerce in Q2 FY24, showing strength in pickup and delivery. The gross profit rate saw an increase of 40 basis points, partially offset by an operating expense deleverage of 28 basis points. Inventory declined 8 per cent YoY, but with higher in-stock levels.

In Q2 FY24, Walmart International was led by strong growth in net sales in constant currency (cc) in Walmex, China, and Flipkart, and positive traffic across markets. There was a 26 per cent YoY growth in e-commerce sales with a boost in store-fulfilled sales. However, the gross margin rate declined by 37 basis points over last year, due to changes in format and channel mix. Operating expense leverage of 129 basis points was noted on strong growth in net sales, which drove fixed cost leverage. The operating income in constant currency was up by 2.2 per cent.

Sam's Club US, Walmart's membership-only retail warehouse club, gained market share in general merchandise in Q2 FY24, including apparel. The segment showed an 18 per cent YoY growth in e-commerce. Strong growth was noted in membership income, up by 7 per cent, with continued strength in Plus member growth and renewals. The membership count increased in the mid-single digits, and Plus penetration was up by 130 basis points compared to the previous year.

“We had another strong quarter. Around the world, our customers and members are prioritising value and convenience. They’re shopping with us across channels—in stores, Sam’s Clubs, and they’re driving e-commerce, which was up 24 per cent globally. Our associates helped deliver increases in transaction counts and units sold, and profit is growing faster than sales. We’re in good shape with inventory, and we like our position for the back half of the year,” said Doug McMillon, president and CEO, Walmart.

Fibre2Fashion News Desk (DP)