1 week ago
Walmart Shares Fall Despite Strong Q2 and Raised Outlook
Walmart said its sales and online shopping business grew in the second quarter.
Revenue reached $187.9 billion, which was 5.9% higher than a year earlier.
Online sales around the world increased 23%.
Flipkart Ads helped Walmart’s international advertising business grow 20%.
However, the timing of Flipkart’s Big Billion Days sale changed this year.
That change is expected to make Walmart’s third-quarter growth look weaker.
Investors reacted negatively, and Walmart’s shares dropped 8.7%.
Walmart still raised its forecasts for the full fiscal year because it expects the business to keep growing.
Walmart reported second-quarter revenue of $187.9 billion, up 5.9% year on year.
Global e-commerce sales rose 23%, while Walmart International’s advertising business grew 20%.
Flipkart Ads led Walmart International’s advertising growth, but Big Billion Days timing is expected to hurt Q3 sales growth by more than 100 basis points.
Walmart shares fell 8.7% after the results, their biggest one-day decline since July 2022.
Walmart raised its fiscal 2027 guidance, forecasting constant-currency sales growth of 4% to 5%.
- Who
- Walmart, including Walmart International and Flipkart Ads, reported the results; John David Rainey commented on the outlook.
- What
- Walmart reported second-quarter fiscal 2027 results, announced strong e-commerce and advertising growth, and raised its full-year guidance.
- Where
- Across Walmart’s United States and international businesses.
- When
- The results were reported on Thursday for the second quarter of fiscal 2027; the Big Billion Days timing is expected to affect the third quarter.
- Why
- The Big Billion Days sale shifted between the third and fourth quarters, creating a projected Q3 comparison headwind, while investors reacted negatively despite raised annual guidance.
Key facts
- Q2 revenue
- $187.9 billion, up 5.9% year on year
- Global e-commerce growth
- 23% year on year
- Walmart International revenue
- $35.2 billion, up 12.8% year on year
- International advertising growth
- 20%, led by Flipkart Ads
- Share-price reaction
- Shares fell 8.7%, the biggest one-day decline since July 2022
- FY2027 sales guidance
- Constant-currency consolidated net sales growth of 4% to 5%
- Q3 sales outlook
- Constant-currency consolidated net sales growth of 3% to 3.75%
Quotes
John David Rainey
Walmart executive vice president and chief financial officer
“Our business model is only getting stronger and more durable, and we’re pleased to raise our guidance for the year.”
CNBC TV 18
Sources
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