01—Abstract
Summary
Summary of the 10-Q filed September 1, 2023. Cited figures are marked; the original filing is the authoritative source.
Walmart Inc. reported strong financial results for the period ending July 30, 2023, demonstrating robust revenue growth across its key segments.
Total revenues reached $161.6 billiona for the quarter, an increase of 5.7% year-over-year, driven by a 5.9% rise in net sales. This growth was fueled by positive comparable sales across Walmart U.S. and Walmart International, with the latter benefiting from favorable currency exchange rates. The company also showed improved profitability, with gross profit margin increasing 50 basis points year-over-year to 24.0% for the quarter.
Operating income also saw a healthy increase, rising to $7.3 billionb. Diluted earnings per share (EPS) reached $2.92, a significant jump from $1.88 in the prior year, reflecting operational efficiencies and strong sales performance.
Key financial health indicators remained stable, with cash and cash equivalents at $13.9 billionc. The company continues to invest strategically in its supply chain, technology, and store remodels, underscoring its commitment to long-term growth and maintaining its competitive edge in the evolving retail landscape.
02—Key points
Key Highlights
- Total revenues for the three months ended July 31, 2023, increased by 5.7% to $161.6 billion, compared to $152.9 billion in the prior year.
- Net sales grew by 5.9% to $160.3 billion for the quarter, driven by strong comparable sales across Walmart U.S. and Walmart International segments.
- Gross profit margin improved to 24.0% for the quarter, up from 23.5% in the same period last year, indicating better cost management and pricing strategies.
- Operating income increased to $7.3 billion, a 6.7% rise from $6.9 billion in the prior year, reflecting improved operational performance.
- Diluted earnings per share (EPS) significantly increased to $2.92 for the quarter, up from $1.88 in the prior year, demonstrating enhanced profitability.
- The company generated $18.2 billion in net cash from operating activities for the six months ended July 31, 2023, a substantial increase from $9.2 billion in the prior year, highlighting strong cash flow generation.
- Strategic capital expenditures totaled $9.2 billion for the six months ended July 31, 2023, primarily focused on supply chain, customer-facing initiatives, technology, and store/club remodels.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2024, Walmart Inc. kept $0.05.
- Revenue$160.28B100.0%
- Cost of revenue−$121.85B76.0%
- Gross profit$38.43B24.0%
- Operating costs−$31.11B19.4%
- Operating income$7.32B4.6%
- Interest, other & tax$575.0M0.4%
- Net income$7.89B4.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed September 1, 2023Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $160.28B$151.38B | +5.9% |
| Cost of Revenue | $121.85B$115.84B | +5.2% |
| Gross Profit | $38.43B$35.54B | +8.1% |
| SG&A Expenses | $32.47B$30.17B | +7.6% |
| Operating Income | $7.32B$6.85B | +6.7% |
| Interest Expense | $543.00M$395.00M | +37.5% |
| Net Income | $7.89B$5.15B | +53.3% |
| EPS (Basic) | $0.98$0.63 | +56.4% |
| EPS (Diluted) | $0.97$0.63 | +54.8% |
| Shares Outstanding (Basic) | 8.08B8.21B | −1.6% |
| Shares Outstanding (Diluted) | 8.11B8.23B | −1.5% |
05—Questions
Frequently Asked Questions
How did Walmart's revenue perform in the latest quarter?
Walmart Inc. reported total revenues of $161.6 billion for the three months ended July 31, 2023, representing a 5.7% increase compared to $152.9 billion in the same period last year. Net sales specifically grew by 5.9% to $160.3 billion, driven by strong comparable sales across its major segments.
What is the trend in Walmart's profitability?
Profitability showed a positive trend. Gross profit margin increased to 24.0% from 23.5% year-over-year. Operating income rose to $7.3 billion, and diluted earnings per share (EPS) saw a significant increase to $2.92 from $1.88 in the prior year, indicating improved operational efficiency and earnings growth.
How is Walmart managing its cash flow and investments?
The company generated a strong $18.2 billion in net cash from operating activities for the first six months of fiscal year 2024, more than doubling the previous year's figure. Investments in capital expenditures totaled $9.2 billion for the same period, with a strategic focus on supply chain, technology, and store enhancements to support long-term growth.
What are the major segments contributing to Walmart's performance?
Walmart U.S. continues to be the largest contributor to revenue, with net sales increasing by 5.4%. Walmart International also showed robust growth, with net sales up 13.3%, benefiting from favorable currency exchange rates and strong comparable sales. Sam's Club experienced a slight dip in net sales due to lower fuel sales but showed growth in merchandise sales and membership income.
06—Continue