Walmart Shares Jump After Q2 Earnings Show Traffic, Ticket Hikes
Walmart shares soared 9.3 percent Thursday to $98.64 after its Q2 FY 2019 earnings report showing revenue grew 3.8 percent year on year in the quarter ended July 27 to $128 billion. U.S. revenue jumped 5.2 percent vs. the year-ago…
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quarter to $82.8 billion, and U.S. e-commerce sales jumped 40 percent, Walmart said. Sam’s Club revenue declined 0.6 percent to $14.8 billion, but comp sales rose 5 percent for its strongest comps growth in six years, Walmart said. U.S. comparable store sales growth of 4.5 percent vs. the prior year was the steepest in over 10 years, led by grocery, apparel and seasonal sales, while electronics had the highest growth in four years due to an “elevated assortment” of TVs, audio and wearables, said the retailer. TV sales in Mexico had an uptick on World Cup interest, it said. Sam’s Club electronic sales were positive for TVs, audio and office, offsetting sluggishness in imaging, surveillance and tablets, it said. Traffic in the quarter grew 2.2 percent and ticket growth was up 2.3 percent, it said. Walmart upped its guidance for FY 2019 comp sales, now expecting 3 percent growth from 2 percent previously. The retailer has a “favorable inventory position” in preparation for the holiday season, with total inventory decreasing 30 basis points vs. Q2 2017; comp store inventory declined about 70 basis points, while in-stock levels remained high, it said. The company opened four Supercenters and one Neighborhood Market in Q2, and it remodeled 154 stores.