Walmart Inc. announced Aug. 17 that U.S. online sales grew 24% for the fiscal 2024 second quarter ended July 28, 2023. International ecommerce sales grew 26%.
Over the same period, comparable in-store sales grew more modestly, up 6.4%, excluding fuel. That’s above analyst expectations of 4.1% growth. Total revenue grew too, by 5.7% to $161.6 billion.
Net revenue was up 6.6% for the first half of fiscal 2024 compared to the six month period last year, Walmart said. Revenue for the first half of the year reached $313.9 billion.
Walmart ranks No. 2 in the Top 1000, Digital Commerce 360’s ranking of North America’s online retailers by web sales. It is also No. 9 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of top online marketplaces.
How much does Walmart make in ecommerce sales?
Online sales remain one of the fastest-growing areas of Walmart’s business. They grew about four times as quickly as comparable in-store sales in the same period. That’s on top of 27% year-over-year growth in Q1. More than 50% of digital orders are fulfilled by stores, Walmart said.
Pickup and delivery services drove the growth, Walmart said, similar to the retailer’s statement in Q1.
“We like the trends we’re seeing in ecommerce,” John David Rainey, chief financial officer, said in the call. “Customers are increasingly counting on us for convenience, and they’re visiting our app and sites more often.
“Around the world, our customers and members are prioritizing value and convenience. They’re shopping with us across channels — in stores, Sam’s Clubs, and they’re driving ecommerce,” CEO Doug McMillon said in a statement.
Weekly active digital users grew 20% in the quarter, Rainey said.
Walmart is planning further online sales growth, too. The retailer plans to “densify our inventory at the first mile, make the middle mile as efficient as possible and then shorten the last mile,” McMillon said. “And our store locations, over 4,700 locations in addition to the fulfillment centers, enable us to do that.”
Other Walmart ecommerce results
Sam’s Club, Walmart’s membership-based warehouse chain, reported ecommerce sales grew 18% in the quarter driven by curbside orders. Net sales, meanwhile, declined slightly, down 0.3%. Income from memberships grew 7%, Walmart said.
Walmart+, the retailer’s membership program in competition with Amazon Prime, also had “consistent growth,” the retailer said, noting the success of Walmart Plus Week in July without revealing more. The sales event drove record customer acquisition, Walmart said.
More people buying groceries on Walmart.com
“Food is a strength, but we’re also encouraged by our results in general merchandise versus our expectations when we started the quarter,” McMillon said in a written statement. Grocery and health and wellness products led sales, the retailer said. Walmart gained market share in grocery, while general merchandise sales declined “modestly.”
Consumers are purchasing more cooking tools like stand mixers to focus on cooking at home, Rainey said. He said grocery sales “continued to outperform” after mentioning domestic sales growth both in stores and online.
“They’re also buying more necessities and focusing on lower-priced items and brands,” he said.
Walmart expectations for holiday season
Following the successful quarter, Walmart announced increases to its outlook for the rest of fiscal 2024. The new guidance is to “reflect Q2 upside, confidence in continued business momentum and ongoing customer response to its value proposition,” Walmart said in a statement.
The retailer increased its forecast for consolidated net sales, with a forecasted increase of 4.0-4.5% for the full year, compared to 3.5% at the end of Q1 in May. Walmart also raised expectations for its consolidated operating income, from 4.0%-4.5% to 7.0%-7.5%.
Walmart earnings
For the second quarter ended July 28, 2023, Walmart reported:
- Total revenue grew 5.7% to $161.6 billion.
- Walmart U.S. ecommerce sales grew 24%.
- Consolidated net income increased 56.5% to $8.1 billion.
For the first half of the fiscal 2024 ended July 28, Walmart reported:
- Total revenue grew 6.6% to $313.9 billion.
- Consolidated net income grew 37.2% to $9.9 billion.
Check back for more earnings reports. See Walmart’s previous earnings release story here.
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