Walmart 2Q Net Rises 5.7 Percent; U.S. Stores Continue Comp Gains
BENTONVILLE, Ark.-With its U.S. stores posting its fourth straight quarter of same-store sales gains, Walmart reported a 5.7 percent increase in net income for the second quarter ending on July 31.
The 2.2 percent pickup in U.S. comparable-store sales was part of an overall rise of 4.5 percent in net sales, which totaled $113.5 billion in the quarter. Bill Simon, president and CEO of Walmart U.S., said all three geographic business units and all store formats had positive comp results. "Customers are responding to our continued focus on providing the right assortment at everyday low prices and are shopping the entire store," Simon said.
The performances at Sam's Club and Walmart International also bolstered the parent company's results. Sam's Club posted same-club increases of 4.2 percent factoring out gasoline sales and 5 percent with gas. Walmart International's sales rose 6.4 percent.
Gross margin for all of Walmart declined 18 basis points to 24.6 percent. Operating, selling, general and administrative expenses edged up 3.4 percent in dollars but dropped 20 basis points as a percentage of sales, to 19.3 percent.
In praising the company's second-quarter performance, Mike Duke, Walmart's president and CEO, said the retailer is well positioned to handle the economic uncertainties lying ahead. "The paycheck cycle remains pronounced in the United States and in our international markets," Duke said. "Given continuing economic pressures, we believe that our price leadership and value are growing in importance to customers across income levels."