Walmart (NYSE: WMT) reported positive second-quarter earnings on Tuesday, topping Wall Street expectations. The results are backed by a strong start to the back-to-school season as well as the company’s increased grocery sales. Shares rose under 1% during early morning trading.
The retail giant reported earnings of USD1.78 per share, compared to the expected USD1.57 a share. Revenue amounted to USD141.05 Billion, higher than analysts anticipated USD137.17 Billion. Furthermore, U.S. comp sales climbed 14.5%, meanwhile same-store sales totaled 5.2%, compared to the predicted growth of 3.12%
According to Walmart the strong comp sales are indicative of “strong underlying business trends, a robust U.S. economy and stimulus spending.” The retailer also highlighted that comp sales gains increased month over month within the quarter, with the best sales posted in July.
In an interview with CNBC, Chief Financial Officer Brett Biggs said that the company is closely monitoring the delta variant, however it has not yet seen any change in customers’ shopping habits.
“Mask wearing is back up again, but runs on supplies — things we saw last March, April [of 2020] — we really haven’t seen again,” he said.
Digital sales did not do as well in the second quarter as it did in the first quarter, but did rise 6%. CEO Doug McMillon stated that global e-commerce sales are “on track to reach $75 billion by the end of the year.”
He added: “We grew market share in U.S. grocery, added thousands of new sellers to our marketplace, rapidly grew advertising businesses around the world, and we’re finding innovative ways to commercialize our data and build technology. We have a unique ecosystem of products and services designed to serve customers in broader, deeper ways, and we’re grateful to our associates for making it all happen.”
Walmart shares have risen approximately 5% this year.