US retailer Walmart's revenue climbs 4.8% to $169.3 bn in Q2 FY25

The company's consolidated operating income rose by $0.6 billion, an 8.5 per cent increase compared to the same period last year. Adjusted operating income also saw a significant boost, growing by 7.2 per cent. Return on assets (ROA) was reported at 6.4 per cent, while return on investment (ROI) increased by 230 bps to 15.1 per cent, Walmart said in a media release.

Global e-commerce sales for Walmart surged by 21 per cent. The company reported an adjusted earnings per share (EPS) of $0.67, excluding a net loss of $0.11 on equity and other investments, net of tax.

Walmart also successfully managed its inventory levels, with global inventory down by 2 per cent, including a 2.6 per cent reduction in Walmart US, all while maintaining healthy in-stock levels.

Walmart US reported net sales of $115.3 billion in Q2 FY25, up from $110.9 billion in the same period last year, representing a 4.1 per cent increase. The gross profit rate for Walmart US improved by 51 bps, driven by increased membership income, although operating expenses saw a slight deleverage of 41 bps. Inventory in this segment declined by 2.6 per cent while maintaining strong in-stock levels.

Walmart International posted net sales of $29.6 billion, a 7.1 per cent increase from $27.6 billion in Q2 FY24. The segment's gross profit rate also saw an increase of 44 bps. Sam’s Club US recorded net sales of $22.9 billion, up 4.7 per cent from $21.8 billion in Q2 FY24.

“Our financial results this quarter demonstrate what Walmart is capable of. I’m proud of how the team has been able to provide a value proposition for our customers and members that now extends beyond great prices into convenience, assortment and experience, while at the same time, transforming our business model for the future,” said John David Rainey, executive vice president and chief financial officer.

Fibre2Fashion News Desk (DP)