Walmart Inc. announced Aug. 17 that U.S. online sales grew 24% for the fiscal 2024 second quarter ended July 28, 2023. International ecommerce sales grew 26%.
Comparable in-store sales grew more modestly, up 6.4%, excluding fuel over the same period. That’s above analyst expectations of 4.1% growth.
Total revenue grew too, by 5.7% to $161.6 billion.
Net revenue was up 6.6% for the first half of fiscal 2024 compared to the six month period last year, Walmart said. Revenue for the first half of the year reached $313.9 billion.
Online sales remain one of the fastest-growing areas of Walmart’s business. They grew about four times as quickly as comparable in-store sales in the same period. That’s on top of 27% year-over-year growth in Q1. More than 50% of digital orders are fulfilled by stores, Walmart said.
According to Walmart, pickup and delivery services drove the growth, similar to the retailer’s statement in Q1.
John David Rainey, chief financial officer, said in the call that the company liked the trends in ecommerce. Customers are increasingly counting on Walmart for convenience, and they’re visiting the company’s app and sites more often.
Weekly active digital users grew 20% in the quarter.
Walmart is planning further online sales growth. The retailer plans to “densify their inventory at the first mile, make the middle mile as efficient as possible and then shorten the last mile”.
Sam’s Club, Walmart’s membership-based warehouse chain, reported ecommerce sales grew 18% in the quarter driven by curbside orders. Net sales, meanwhile, declined slightly, down 0.3%. Income from memberships grew 7%, Walmart said.
Walmart+, the retailer’s membership program in competition with Amazon Prime, also had “consistent growth,” the retailer said, noting the success of Walmart Plus Week in July without revealing more. The sales event drove record customer acquisition, Walmart said.
Walmart gained market share in grocery, while general merchandise sales declined “modestly.”
Consumers are purchasing more cooking tools to focus on cooking at home. They’re also buying more necessities and focusing on lower-priced items and brands.
Following the successful quarter, Walmart announced increases to its outlook for the rest of fiscal 2024. The retailer increased its forecast for consolidated net sales, with a forecasted increase of 4.0-4.5% for the full year, compared to 3.5% at the end of Q1 in May. Walmart also raised expectations for its consolidated operating income, from 4.0%-4.5% to 7.0%-7.5%.
For the second quarter ended July 28, 2023, Walmart reported:
- Total revenue grew 5.7% to $161.6 billion.
- Walmart U.S. ecommerce sales grew 24%.
- Consolidated net income increased 56.5% to $8.1 billion.
For the first half of the fiscal 2024 ended July 28, Walmart reported:
- Total revenue grew 6.6% to $313.9 billion.
- Consolidated net income grew 37.2% to $9.9 billion.