Summary
Walmart Inc. reported its fiscal second-quarter results for the period ending July 31, 2018, revealing a net loss attributable to shareholders of $861 million, or $0.29 per diluted share. This contrasts with a net income of $2.9 billion, or $0.96 per diluted share, in the same period last year. The significant year-over-year decline in profitability was primarily driven by a substantial $4.8 billion pre-tax loss associated with the divestiture of its majority stake in Walmart Brazil, as well as a $1.9 billion decrease in the market value of its investment in JD.com. Despite the net loss, the company demonstrated strong operational performance in its core U.S. segment, with net sales increasing by 5.2% to $82.8 billion, driven by a comparable sales growth of 4.7%. This reflects continued customer traffic and sales momentum. The company also made significant strategic moves, including the acquisition of a majority stake in Flipkart, an Indian eCommerce marketplace, for approximately $16 billion, positioning itself for growth in emerging markets. While the reported net loss is a key concern, investors should consider the underlying operational strength in the U.S. and the strategic investments aimed at long-term growth.
Financial Highlights
50 data points| Revenue | $127.06B |
| Cost of Revenue | $95.57B |
| Gross Profit | $31.49B |
| SG&A Expenses | $26.71B |
| Operating Income | $5.75B |
| Interest Expense | $460.00M |
| Net Income | -$861.00M |
| EPS (Basic) | $-0.10 |
| EPS (Diluted) | $-0.10 |
| Shares Outstanding (Basic) | 8.84B |
| Shares Outstanding (Diluted) | 8.84B |
Key Highlights
- 1Reported a net loss attributable to shareholders of $861 million for the quarter, a significant decrease from the $2.9 billion net income in the prior year's second quarter.
- 2The net loss was heavily impacted by a $4.8 billion pre-tax loss from the sale of a majority stake in Walmart Brazil.
- 3Investment in JD.com decreased in value by $1.9 billion during the period, contributing to the net loss.
- 4Walmart U.S. segment showed robust growth with net sales up 5.2% to $82.8 billion and comparable sales up 4.7%.
- 5Acquired a 77% stake in Flipkart, an Indian eCommerce marketplace, for approximately $16 billion, signaling a strategic focus on international e-commerce expansion.
- 6Operating expenses as a percentage of net sales decreased slightly across consolidated operations, indicating improved efficiency.
- 7Maintained a strong liquidity position with $15.8 billion in cash and cash equivalents at the end of the period.