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Walmart Q2 Earnings Exceed Expectations As Market Share Grew In U.S. Grocery

By John F. Heerdink, Jr.

Reportedly, the world’s largest retailer Walmart Stores, Inc. (WMT) exceeded Wall Street’s Q2 revenue and sales estimates driven by store traffic and high grocery sales. The retailer reported an adjusted EPS of $1.78 versus $1.57 expected.  Revenue stood at $141 billion versus $136.88 billion expected. Walmart U.S. comp-store sales (excluding gas) was 5.2% versus 3.12% estimate and U.S. e-commerce sales stood at 6%.

Online sales grew at a slower pace during the second quarter compared to the first quarter, climbing 6%. On a two-year stack, e-commerce sales were up 103%. In a statement, CEO Doug McMillon pointed out that global e-commerce sales are “on track to reach $75 billion by the end of the year.”

CEO Doug McMillon added: “We grew market share in U.S. grocery, added thousands of new sellers to our marketplace, rapidly grew advertising businesses around the world, and we’re finding innovative ways to commercialize our data and build technology. We have a unique ecosystem of products and services designed to serve customers in broader, deeper ways, and we’re grateful to our associates for making it all happen.”

Health and wellness comps increased by mid-double-digits, with Vision Centers open, vaccines, and branded drug inflation, but general merchandise category grew in the low single-digits, “lapping last year’s stimulus-driven growth.” The retailer raised its full-year guidance, forecasting U.S. comp sales growth of 5% to 6%, also ahead of analysts’ expectations of 3.22%.

Walmart Stores, Inc. (WMT) is a worldwide retailer that operates in various formats. The three segments of the company include Walmart U.S., Walmart International, and Sam’s Club. The company is comprised of discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, cash and carry stores, home improvement stores, specialty electronics stores, apparel stores, drug stores, convenience stores, and membership-only warehouse clubs; and retail Websites. To learn more about Walmart (WMT) and to continue to track its progress please visit the Vista Partners Walmart Coverage Page

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives. 

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(Read Original Story: Walmart Q2 earnings soar as Delta variant fails to curb traffic, grocery spending boom in Yahoo Finance)


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