Walmart Releases Q2 FY19 Earnings Results

Walmart Releases Q2 FY19 Earnings Results

Walmart Releases Q2 FY19 Earnings Results

The FINANCIAL -- Total revenue was $128.0 billion, an increase of $4.7 billion, or 3.8%. Excluding currency2, total revenue was $127.8 billion, an increase of $4.4 billion, or 3.6%.

Walmart U.S. comp sales1 increased 4.5%, the strongest growth in more than ten years led by the performance of grocery, apparel and seasonal.

Strong comp sales were supported by traffic and ticket growth as each exceeded 2.0%.

Walmart U.S. omni-channel saw significant progress with an expanded online assortment, including 1,100 popular new brands. Grocery pickup is now in more than 1,800 locations, and the company is on track to reach about 40% of the U.S. population by year-end with grocery delivery.

Sam's Club comp sales1 increased 5.0%4, the strongest growth in six years.

Net sales at Walmart International were $29.5 billion, an increase of 4.0%. Excluding currency2, net sales were $29.2 billion, an increase of 3.1%.

Comp sales were positive in the four largest markets.

Adjusted EPS2 excludes the impact of three items:

Charge of $1.51 related to the sale of a majority stake in Walmart Brazil

Negative impact of $0.04 due to an adjustment in the provisional amount related to Tax Reform

Unrealized loss of $0.03 on the company's equity investment in JD.com

Other gains and losses

Other gains and losses in Q2 fiscal 2019 consists primarily of a $4.8 billion pre-tax loss related to the sale of a majority stake in Walmart Brazil and a $94 million unrealized loss on the company's JD.com investment due to a decline in the JD.com stock price during the quarter.

Portfolio Repositioning

Thoughtful and deliberate consideration of the company's portfolio of businesses is a key enabler of its strategic framework. Following is an update of recently announced transactions.

Segment results

In the first quarter of fiscal 2019, the company revised its corporate overhead allocations to the operating segments. Accordingly, previous segment operating income was recast to be comparable to the current period.