Walmart Inc. (NYSE: WMT) has released its fiscal Q2 2022 earnings in which total revenue was up 2.4% YoY to $141 billion, which was negatively impacted by around $8.9 billion associated with divestitures. The company's total revenue could have grown 0.6% to around $138.6 billion excluding currency.
Walmart’s international sales dropped 15.2%
The retailer grew its grocery market share with comp transactions robust at 6.1%, led by its outlets. As a result, operating income rose 20.4%, while adjusted operating income was up 12%. Walmart grew e-commerce sales 6% and 103% on a 2-year stack thanks to solid advertising globally that included sales doubling in the US compared to a year ago. Also, Comp sales from Sam's Club were up 7.7%, with eCommerce sales growing 27%. In addition, the company reported a membership income increase of 12.2%, with a record member count during the quarter.
Surprisingly, international net sales dropped 15.2% to $23 billion, negatively impacted by around $8.9 billion divestitures. Currency exchange rate changes positively affected international net sales by around $2.4 billion. The company saw consolidated gross profit drop 15 basis points while Walmart US was up 20 basis points. Walmart has repurchased around $5.2 billion worth of shares YTD, representing almost 25% of the $20 billion the company announced at the beginning of this year.
Walmart expects net sales to grow 6-7% for FY2022
CEO Doug McMillon said, “We had another strong quarter in every part of our business. Our global eCommerce sales are on track to reach $75 billion by the end of the year, further strengthening our position as a leader in omnichannel. 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.”
For the full fiscal 2022, the company expects consolidated net sales to grow between 6% and 7% or over $30 billion excluding divestitures with comp sales expected to grow 5%-6% and Sam's Club expected to grow 7.5% and 8.5%. The company expects international net sales to drop 21.5% to 22.5% in constant currency as a result of divestitures.