Walmart’s New Rollback: Stock Prices

There’s selling the news, and then there’s whatever the heck happened to $WMT shares today after the retailer’s earnings beat. 😱

WMT Hourly Chart – Click to enlarge.

Here’s some of the key figures from the report:

    • Revenue: Consolidated revenue of $161.6 billion, marking an increase of 5.7%.
    • eCommerce: Saw a global growth of 24%.
    • EPS: GAAP EPS stood at $2.92, while the Adjusted EPS was $1.84.
    • Gross Margin Rate: Increased by 50bps, influenced by lapping elevated markdowns and supply chain costs.
    • Operating Expenses: Grew by 33bps as a percentage of net sales.

Walmart’s domestic and international businesses did great, along with Sam’s Club.

    • Walmart U.S.:
      • Comp sales up by 6.4%.
      • eCommerce growth of 24% with a notable performance in pickup & delivery.
      • Gross profit rate increased by 40bps.
    • Walmart International:
      • Net sales of $27.6 billion, a 13.3% increase YoY.
      • eCommerce sales grew by 26%.
    • Sam’s Club U.S.:
      • Net sales of $21.8 billion.
      • Comp sales (excluding fuel) increased by 5.5%.
      • eCommerce growth of 18% led by curbside pickup.
      • Membership income grew by 7.0%.

Doug McMillon, President and CEO of Walmart, commented on the strong performance, emphasizing the company’s omnichannel strength and the significant growth in eCommerce. He also highlighted the company’s good inventory position and readiness for the latter half of the year. 👍

As a result, the company raised its full-year 2024 guidance. It now expects net sales to rise 4% to 4.5%, up from prior guidance of 3.5%. And adjusted earnings per share of $6.36 to $6.46, up from $6.10 to $6.20. 🔺

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