Walmartone of the largest distribution groups in the world, continues the trend of positive results in the second quarter of the year. The United States is going through a difficult period due to rising inflation and the company has managed to find the best strategy to overcome the difficulties: a low-price policy.
«We had another strong quarter. Around the world, our customers and members value value and convenience.” he claimed Doug McMillon, Chairman and CEO of Walmart, in a press release, adding: “Grocery is a strength but we are also encouraged by our results in general merchandise compared to our expectations at the beginning of the quarter. Our associates have helped increase the number of transactions and units sold, and profits are growing faster than sales«. The company’s sales totaled $161,600 million (around 148 million euros), which corresponds to one growth of 5.9% compared to the same period in 2022. The Operating profit increased by 6.7% reaches 7,316 million dollars (around 6,740 million euros). And the consolidated net income reached $7,891 million, a whopping 53.3% increase.
With this in mind, online sales in the second quarter made department stores happy E-commerce net sales increased 24% compared to the previous year. Worldwide reached Walmart’s online net sales volume $24,000 million, which is 15% of total net sales.
Another business area that reported good results for the company was advertising, which saw a 35% increase globally year-over-year.
Walmart’s international business was also doing well, posting $27 billion in net sales (up 11% year over year). The growth that the company attributes in its statement to the results of Walmex, China and Flipkart sales, e-commerce sales and advertising.
He also highlighted the results achieved with his brand Sam’s Clubs which ended the quarter with strong sales led by food and consumables, and a 7% increase in membership income.
Walmart outlook for 2024
For the next quarter and 2024, the US company remains optimistic. For the third quarter, consolidated net sales are expected to increase by 3%, while full-year growth is expected to be between 4% and 4.5%. «We are in good shape with inventories and are satisfied with our position for the second half of the year” said Doug McMillon, Chairman and CEO of Walmart.