Walmart Continues on Growth Track in Q2 (2024)

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At Walmart U.S., Q2 sales reflected strength in transaction counts and unit volumes across both stores and e-commerce channels. According to the company, Walmart U.S.’ value-convenience proposition continued to resonate with customers and members, with share gains across income cohorts mainly driven by upper-income households. There was robust momentum in e-commerce, with growth of 22%, led by store-fulfilled pickup and delivery, and Walmart Connect advertising sales grew 30%, with strong growth in advertiser counts, including marketplace sellers. Additionally, the gross profit rate increased by 51 basis points, membership income increased, and operating expense deleveraged by 41 basis points. Further, inventory declined 2.6% while the division maintained healthy in-stock levels.

Sam’s Club U.S. logged strong Q2 comp sales, led by food and health and wellness, as well as increases in transactions and unit volumes. The division gained dollar and unit market share in the grocery and general merchandise categories, including apparel and electronics, while e-commerce sales grew 22%. There was also strong growth in membership income, which rose 14.4%, with record total membership and Plus penetration at the quarter’s end. Additionally, the gross profit rate increased by 22 basis points, operating expense deleveraged by 26 basis points and inventory dipped 1.7%, although with sustained strong sales and in-stock levels.

For its Q3 guidance, Walmart expects net sales to grow 3.25% to 4.25% and operating income to grow 3.0% to 4.5% in constant currency. Given the confidence it has in its business, the company has raised its outlook for FY25, with net sales expected to grow 3.75% to 4.75% and adjusted operating income to grow 6.5% to 8.0% in constant currency.

Each week, approximately 255 million customers and members visit Walmart’s more than 10,500 stores and numerous e-commerce websites in 19 countries. With fiscal year 2024 revenue of $648 billion, theretaileremploys approximately 2.1 million associates worldwide. Bentonville, Ark.-based Walmart U.S. is No. 1 on Progressive Grocer’s 2024 list of thetop food and consumables retailers in North America, while Sam's Club, Walmart warehouse club division, is No. 8. PG also named Walmart one of itsRetailers of the Century.