Walmart beats sales, boosts outlook as higher-income consumers continue to flock to retail giant

Walmart ( WMT ) reported another solid quarter as its business proved resilient against discerning consumers and persistent inflation.

In Q2, revenue rose 4.8% to $169.34 billion, compared to estimates of $168.46 billion. Adjusted earnings also beat estimates of $0.67, up 9.8% year over year.

“Every part of the business is growing,” CEO Doug McMillon said in the release. “In-store and club sales are growing, e-commerce is getting worse as we level off lift, and even faster growth in shipments as our speed improves.”

He added that its online marketplace, membership model and advertising business (which grew 26% globally) helped diversify the retailer’s profits.

U.S. same-store sales rose 4.3 percent, including a 4.2 percent increase for Walmart’s namesake business and a 5.2 percent increase for Sam’s Club, according to Bloomberg estimates.

Food remains a key business, a major driver behind foot traffic and higher ticket sizes.

“Grocery, consumables and essentials … will continue to be the key driver,” Telsey Advisory Group’s Joe Feldman told Yahoo Finance ahead of the results. “People are looking for value, people are trying to stretch their dollars.”

In Walmart’s US business, the company said it continued to gain cohorts across all income cohorts, including upper-income households, due to its “advantageous value proposition”.

Grocery accounts for about 60% of Walmart’s US sales. Last quarter, it introduced a private-label brand called Bettergoods, which offers healthier, higher-quality products at a $5 price point.

CFRA analyst Arun Sundaram said the retailer is looking to retain the higher-income households it has won by making shoppers think, “Hey! This is not the Walmart of 10-15 years ago.”

“Keep in mind that Walmart mostly sells groceries and other household products and takes market share, so what it experienced is going to be a little different than what other retailers have experienced,” UBS analyst Michael Lasser told Yahoo Finance .

Its international business posted a 7.1% increase in sales as it increases the number of stores and its online business.

Earnings Breakdown

Here’s what Walmart reported for the second quarter of fiscal 2025, compared to Bloomberg estimates:

Income: $169.34 billion versus $168.46 billion

Adjusted earnings per share: $0.67 vs. $0.65

Total US Same Store Sales Increase: 4.30% vs. 3.41%

Walmart US Same Store Sales Growth: 4.20% vs. 3.43%

• Traffic: 3.60% vs. 2.82%

• Ticket Increase: 0.60% vs. 1.27%

• The rise of e-commerce: 3.00% vs. 2.10%

The story continues

Sam’s Club US Same Store Sales Growth: 5.20% vs. 3.90%

For fiscal 2025, Walmart now expects sales to grow between 3.75% and 4.75%, with adjusted EPS between $2.35 and $2.43. This compares to previous guidance for net sales growth at the high end of 3% to 4% and adjusted EPS in the range of $2.23 to $2.37.

Walmart shares are up 27.5% this year, compared with a 14% gain for the S&P 500 (^GSPC).

—

Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @Brooke DiPalma or email them at [email protected].

Click here for all the latest retail stock news and events to better inform your investment strategy