Walmart Reports Mixed Financial Results for Q2 2024, with Revenue Growth and Improved Operating Income

Walmart Inc. reported its financial results for the three and six months ended July 31, 2024, showing notable changes in revenue and profitability compared to the previous fiscal year.

For the three months ended July 31, 2024, Walmart's net sales reached $167,767 million, an increase from $160,280 million in the same period of 2023. Total revenues also rose to $169,335 million from $161,632 million year-over-year. Operating income for the quarter improved to $7,940 million, up from $7,316 million, reflecting an 8.5% increase. However, consolidated net income for the quarter decreased significantly to $4,711 million, down from $8,053 million in the prior year, leading to a basic net income per share of $0.56, compared to $0.98 in 2023.

For the six months ended July 31, 2024, net sales totaled $327,705 million, compared to $311,284 million in the same period of 2023. Total revenues increased to $330,843 million from $313,933 million. Operating income for the six-month period rose to $14,781 million, up from $13,556 million, while consolidated net income slightly increased to $10,018 million from $9,949 million, resulting in a basic net income per share of $1.19, a marginal increase from $1.18 in the previous year.

Walmart's U.S. segment reported net sales of $115,347 million for the three months ended July 31, 2024, a 4.1% increase from $110,854 million in 2023. The Walmart International segment also saw growth, with net sales rising to $29,567 million from $27,596 million. The Sam's Club segment reported net sales of $22,853 million, up from $21,830 million.

The company experienced a gross profit rate increase of 43 basis points for both the three and six months ended July 31, 2024, primarily driven by the Walmart U.S. segment and growth in higher-margin businesses globally. However, operating expenses as a percentage of net sales increased due to higher marketing expenses and variable pay.

Walmart's total assets as of July 31, 2024, were $254,440 million, slightly up from $252,399 million at the end of January 2024, but down from $255,121 million a year earlier. The company reported total current liabilities of $95,260 million, an increase from $92,415 million at the end of January 2024.

In terms of strategic developments, Walmart's Board of Directors approved a $20 billion share repurchase program, with $14.5 billion remaining as of July 31, 2024. The company also announced a common stock split of 3-for-1 effective February 23, 2024. Additionally, Walmart is involved in ongoing opioid-related litigation and has accrued a liability of approximately $3.3 billion for settlements related to these matters.