Walmart (WMT) Kicks Off Unofficial Retail Earnings Season As Consumers ‘Rollback’ into Stores

Mega-retailer Walmart (WMT) beat and raised on its Q2 earnings as it noted a stable consumer. Q2 EPS was $0.67 vs FactSet $0.65 while revenue for the quarter was $169.34B vs FactSet $168.56B. Q3 outlook came in a bit light with EPS $0.51-0.52 vs FactSet $0.55 and revenue growth projected at +3.25% to +4.25% y/y with FactSet consensus at +3.9%. However, FY guidance was raised to reflect its first half strength (EPS $2.35-2.43 vs prior guidance $2.23-2.37 and FactSet $2.44). US comp growth came in at 4.2% higher than the 3.4% consensus. This growth was attributed to increased traction, units and continued share gains across all income groups led by the upper-income households. eCommerece saw growth as the company’s advertising was another positive mention for the quarter.

Management noted that while consumers are still focused on value and essentials over discretionary items, there was no deterioration of consumer health as each month of the quarter remained relatively consistent providing a brighter than expected note on the report as the consumer resilience narrative strengthens.

Walmart’s earnings announcement posted ahead of July’s retail sales report which also proved stronger than expected with a 1% m/m increase, its largest since January 2023.