Walmart posts 4.8% gain in quarterly revenue, unadjusted net income down 43%

Walmart on Thursday (Aug. 15) reported an almost 5% gain in quarterly revenue but saw unadjusted net income drop 43% in the quarter. The Bentonville-based company boosted full fiscal year net sales growth guidance from a high of 4% to a high of 4.75%.

Net income in the fiscal quarter ended July 31 was $4.501 billion, down 43% compared with the same period in the previous fiscal year. Earnings per share was 56 cents, below the consensus estimate of 65 cents. However, adjusted earnings per share, which included impacts from investments and business reorganization costs, was 67 cents.

Total revenue in the quarter was $169.335 billion, up 4.8% compared with the same period in the previous fiscal year, and above the consensus estimate of $168.53 billion.

The company noted in the earnings report that it’s not “seeing signs of customer fraying.” The company also reported “flattish to very slightly positive sales for the first time in 11 quarters” in its general merchandise category.

“Our team delivered another strong quarter. They work hard every day to help our customers and members save time and money. Each part of our business is growing – and our newer businesses are diversifying our profits and reinforcing the resilience of our business model,” Walmart CEO Doug McMillon noted in the report.

Sales in the Walmart U.S. segment totaled $115.347 billion, up 4.1% from the $110.854 billion in the same quarter of 2023. Operating income in the segment totaled $6.591 billon, up 7.8% compared with the same period in 2023.

International segment sales totaled $29.567 billion, up 7.1% compared with the same period in 2023. Operating income in the segment was $1.36 billion, up 14.3%. Sam’s Club sales totaled $22.853 billion, up 4.7% compared with $21.83 billion in the same period of 2023. Operating income in the segment was $581 million, 11.5% compared with $521 milling in the same period of 2023.

Ecommerce sales grew 22% in the quarter and was driven by in-store fulfillment and delivery. The company also said its Walmart Connect advertising business grew 30%.

Net income in the first half of the fiscal year is $9.605 billion, up 0.4% compared with $9.564 billion in the same period of 2023. Total revenue in the first half of the year was $330.843 billion, up 8.4% compared with the same period in the previous fiscal year.

The global retailer ended the quarter with $8.879 billion in cash and cash equivalents, down from $13.971 billion at the end of the same quarter in 2023.

Walmart shares (NYSE: WMT) closed Wednesday at $68.13. During the past 52 weeks the share price has ranged between $71.33 and $49.85.