NASDAQ$WMT

Walmart Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Walmart's Q2 2023 earnings reflected strong top-line growth, driven by inflation and increased customer traffic, but profitability was pressured by inventory actions and sales mix.

Walmart's Q2 FY23 earnings showed strong revenue growth, driven by inflation and increased customer traffic. However, profitability was impacted by actions taken to improve inventory levels and a heavier mix of sales in grocery. The company maintains its outlook for the back-half of the fiscal year.

  • Total revenue increased by 8.4% to $152.9 billion, or 9.1% in constant currency.
  • Walmart U.S. comp sales grew 6.5%, including mid-teens growth in food, and eCommerce increased by 12%.
  • Sam's Club comp sales increased 9.5%, with membership income up 8.9%.
  • Consolidated gross profit rate declined by 132 basis points due to markdowns and sales mix in the U.S., and an inflation-related LIFO charge at Sam's Club.

Headline financials

Total Revenue

$153B

Previous: $141B+8.4%
EPS (adj)

$0.59

Previous: $0.59+0.0%
Capital Expenditures

-$7.49B

Previous: -$5.02B-49.3%
Free Cash Flow

-$2.34B

Previous: -$743M-215.3%
Net Income

$5.15B

Previous: $4.28B+20.4%
Operating Income

$6.85B

Previous: $7.35B-6.8%
Gross Profit

$37B

Previous: $35.9B+3.2%
Cash & Equivalents

$13.9B

Previous: $22.8B-39.0%
Total Assets

$247B

Previous: $239B+3.6%

Revenue & EPS history

Walmart · Revenue · Quarterly

$153B

Q2 2023+8.4%vs Q2 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Walmart · $153B total across 4 segments · Q2 2023

  • Walmart U.S.
    $105B+7.1%
  • Walmart International
    $24.4B+5.7%
  • Sam's Club U.S.
    $21.9B+17.5%
  • Membership & Other
    $1.48B+25.6%

Forward guidance

The company updates its guidance for the fiscal year to reflect second-quarter performance and maintains its outlook for the back-half of the year.

Tailwinds

  • Consolidated net sales growth of about 5%, negatively affected by approximately $1.3 billion from currency fluctuations.
  • Walmart U.S. comp sales, excluding fuel, of about 3.0%.
  • Consolidated operating income decline of 8.0% to 10.0%.
  • Adjusted earnings per share decline of 9.0% to 11.0%.
  • Consolidated net sales growth is expected to be about 4.5%.

Headwinds

  • Consolidated adjusted operating income is expected to decline 9.0% to 11.0%, which improved from the company’s prior guidance of a decline of 11.0% to 13.0% and reflects better performance in the second quarter.
  • Adjusted earnings per share are expected to decline 9.0% to 11.0%.
  • Guidance assumes a generally stable consumer in the U.S.
  • Guidance assumes continued pressure from inflation and mix of products and formats globally.
  • The company expects a headwind of about $2.1 billion in the second half of the year due to exchange rates.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.3%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+0.0%

Avg return

30 days after

39%

28 / 72 earnings

Positive

+10.6%

Q1 2017

Best reaction

-17.4%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027+0.7%
Q4 2026-1.4%+0.1%-6.0%
Q3 2026+5.9%+6.4%+13.7%
Q2 2026-4.2%-6.4%-0.2%
Q1 2026-0.5%+1.0%-2.5%
Q4 2025-6.5%-6.1%-17.3%
Q3 2025+3.7%+7.6%+11.1%
Q2 2025+7.0%+8.6%+17.4%
Q1 2025+8.1%+8.9%+12.0%
Q4 2024+2.0%+3.1%+8.2%
Q3 2024-8.5%-8.2%-10.0%
Q2 2024-0.8%-1.4%+3.4%
Q1 2024+0.3%-0.8%+4.0%
Q4 2023-1.5%-2.7%-4.0%
Q3 2023+7.3%+8.6%+5.0%
Q2 2023+5.2%+3.3%+0.7%
Q1 2023-17.4%-19.6%-18.6%
Q4 2022+3.3%+2.2%+8.9%
Q3 2022-3.4%-3.1%-2.4%
Q2 2022-1.1%+0.5%-3.8%
Q1 2022+2.2%+2.1%-0.8%
Q4 2021-6.0%-8.0%-10.5%
Q3 2021-2.2%-1.4%-4.2%
Q2 2021-2.3%-2.9%+0.8%
Q1 2021-1.7%-2.6%-7.6%
Q4 2020-0.2%+0.6%+1.3%
Q3 2020-1.8%-0.9%-0.6%
Q2 2020+6.4%+5.5%+10.6%
Q1 2020+1.0%+1.2%+9.2%
Q4 2019-0.1%-0.4%-0.9%
Q3 2019-3.8%-7.3%-9.5%
Q2 2019+8.5%+6.5%+4.8%
Q1 2019-2.9%-3.2%-2.8%
Q4 2018-12.7%-11.3%-16.8%
Q3 2018+8.5%+7.4%+8.1%
Q2 2018-2.0%-1.2%-0.7%
Q1 2018+4.9%+4.5%+0.2%
Q4 2017+3.4%+4.4%+0.7%
Q3 2017-4.0%-1.8%-0.6%
Q2 2017-0.2%-1.3%-0.1%
Q1 2017+10.6%
Q4 2016-2.2%
Q3 2016+5.3%
Q2 2016-4.6%
Q1 2016-5.0%
Q4 2015-2.3%
Q3 2015+4.7%
Q2 2015-0.2%
Q1 2015-2.2%
Q4 2014-2.3%
Q3 2014+0.4%
Q2 2014-3.0%
Q1 2014-2.5%
Q4 2013+1.7%
Q3 2013-4.6%
Q2 2013-3.3%
Q1 2013+5.5%
Q4 2012-6.2%
Q3 2012-2.9%
Q2 2012+3.1%
Q1 2012-1.6%
Q4 2008-0.4%
Q3 2011+0.8%
Q2 2011+3.2%
Q4 2010+3.2%
Q1 2010-1.9%
Q1 2011+0.1%
Q3 2009-1.6%
Q3 2010-1.6%
Q4 2009-0.7%
Q2 2009-0.7%
Q2 2010-0.7%

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