Walmart Beats Q2 Expectations, Raises Guidance, Stock Surges
Strong Sales Growth Across the Board
Walmart reported strong sales growth in all three of its operating segments: Walmart U.S., Sam's Club, and Walmart International. The company's total revenue increased by 8.4% to $152.9 billion, driven by a 6.8% increase in comparable sales. Walmart U.S. saw a 6.5% increase in comparable sales, while Sam's Club had a 10.5% increase and Walmart International had a 6.8% increase.
Walmart U.S.
Walmart U.S. had a strong quarter, with comparable sales increasing by 6.5%. This was driven by strength in grocery, apparel, and home goods. The company also saw growth in its online grocery business, with sales increasing by over 20%. Walmart U.S. now has over 3,000 grocery pickup locations and 1,000 grocery delivery locations.
Sam's Club
Sam's Club had a stellar quarter, with comparable sales increasing by 10.5%. This was driven by strong demand for bulk food and beverage items, as well as home and office supplies. Sam's Club also saw growth in its e-commerce business, with sales increasing by over 25%.
Walmart International
Walmart International had a solid quarter, with comparable sales increasing by 6.8%. This was driven by strong growth in Mexico, Canada, and China. Walmart International also saw growth in its e-commerce business, with sales increasing by over 30%.
Raised Guidance
Based on its strong Q2 results, Walmart raised its guidance for the full year. The company now expects to report net sales growth of 5.0% to 5.5%, up from its previous guidance of 4.5% to 5.0%. Walmart also raised its guidance for earnings per share, with the company now expecting to earn between $6.40 and $6.60 per share.
Stock Rally
Walmart's stock rallied after the company reported its Q2 results. The stock rose by over 5% in premarket trading and continued to climb in the regular trading session. Walmart's stock is now trading at its highest level in over three months.
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