August 16, 2018
Walmart’s revenue rose 3.8% to $128.03 billion in the quarter ended July 31. Same-store U.S. sales increased 4.5%, led by grocery, apparel and seasonal; foot traffic was up 2.2%. Grocery sales rose the most in nine years, helped by improved fresh-food offerings.
Walmart has been making significant investments online, from its improved e-commerce site to expanded grocery delivery options. Online U.S. sales jumped 40% during the second quarter, and the retailer reiterated it is on track to increase U.S. e-commerce sales by 40% for the full year.
Although, It was not all good news. Walmart’s margins continue to be under pressure amid investments in cutting prices, digital, store refurbishments, and increased labor and transportation costs.
For the full year, Walmart now expects to earn between $4.90 and $5.05 per share, which is up from a prior range of $4.75 to $5 and excluding any impact from its pending acquisition of Flipkart. It expects U.S. same-store sales to increase rise about 3%, up from a prior target of at least 2%.
“We’re pleased with how customers are responding to the way we’re leveraging stores and e-commerce to make shopping faster and more convenient,” Walmart CEO Doug McMillion said in a statement. “We’re continuing to aggressively roll out grocery pickup and delivery in the U.S., and we recently announced expanded omnichannel initiatives in China and Mexico.”
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