American giant Walmart has increased its full-year outlook for the second time this year as sales surged in the second quarter despite the effects of the Delta strain on consumer confidence.
Walmart reported that total sales for the three months to the end of July were $141bn (£102.5bn), a 2.4% increase on the same period in 2020, as the retail giant gained market share in grocery and enjoyed a rebound in sales of travel-related products.
In the US, Walmart’s comparable store sales rose 5.2%, while the retailer’s online sales grew a further 6%, finishing the period 103% ahead of pre-pandemic levels.
The world’s biggest retailer said that operating income for the period was $7.4bn, an increase of 21.4%, while sales at Sam’s Club increased 7.7% in-store and 27.7% online. Income from Sam’s Club increased 12.2%, while membership numbers hit an all-time high in the second quarter.
While Walmart delivered strong results in the US, its international arm had a weaker quarter. Walmart International sales were $23bn for the period, a decrease of 15.2%, affected by the £6.8bn sale of Asda to the Issa brothers and TDR Capital, which was completed during the second quarter.
Back to school boost
With the Delta variant of the coronavirus becoming increasingly dominant in the US, some analysts had predicted this would have an impact on second-quarter sales. However, in a presentation accompanying its second-quarter numbers, Walmart said it had experienced a solid start in back-to-school categories, and that grocery sales had accelerated as the quarter progressed.
Walmart president and chief executive Doug McMillon said: “We had another strong quarter in every part of our business. Our global ecommerce sales are on track to reach $75bn by the end of the year, further strengthening our position as a leader in omnichannel.
“We grew market share in US grocery, added thousands of new sellers to our marketplace, rapidly grew advertising businesses across the world and we’re finding innovative ways to commercialise our data and build technology.
“We have a unique ecosystem of products and services designed to serve customers in broader, deeper ways, and we’re grateful to our associates for making it all happen.”
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