Walmart Inc. (WMT, Financial) released its second-quarter financial results before the opening bell on Aug. 15, edging past projections on the back of robust U.S. comps growth and e-commerce growth.
By the numbers
The retail giant posted earnings of $1.27 per share, which declined 2% year over year but topped analysts’ estimates of $1.21. Revenue grew 2% to $130.38 billion, beating expectations of $130.11 billion by a hair.
Comparable store sales improved 2.8% on the back of strong grocery sales and an increase in the number of shoppers in stores and online. This was more than the 2.1% growth analysts were anticipating. The number of transactions also grew 0.6% during the quarter. The average ticket climbed 2.2%, compared to a 1.8% rise in the year-ago quarter.
Strong e-commerce growth
E-commerce sales grew 37% in the U.S. The company has gradually introduced next-day delivery from Walmart.com, which now caters to about three-fourths of the U.S. population. The retailer has more than 2,700 stores that provide pick up services for online grocery orders. In addition, there are more than 1,100 locations offering same-day grocery delivery.
Online sales growth is anticipated to be 35% for the full year.
Online efforts
Walmart has poured billions of dollars into expanding its online offerings. The company has also invested in enhancing its digital capabilities in stores, which encompasses online grocery shopping and picking up orders from the parking lot. In addition, the company is implementing automation in stores and spending more on faster online shipping.
Guidance
Walmart sees fiscal 2020 earnings per share slightly down to slightly up. The retailer projects same-store sales in the U.S. will falll at the higher end of its previously forecasted range of 2.5% to 3% growth.
Disclosure: I do not hold any positions in the stocks mentioned.
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