1. News
August 17, 2022

Walmart posts 8.4% rise in revenue in second quarter of FY23

The multinational retailer reported revenue of $152.9bn, compared with $141bn a year earlier.

US-based retail giant Walmart has reported revenue of $152.9bn for the second quarter (Q2) of the fiscal year 2023 (FY23), which ended on 31 July.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The figure represents an 8.4% increase from $141bn recorded in the same period of the previous year (FY21).

The company’s quarterly net sales also grew by 8.2% year-over-year (YoY) to $151.4bn during the three-month period.

During the quarter, Walmart’s consolidated operating income stood at $6.9bn, a decrease of 6.8%. This figure includes a positive impact of a $173m insurance settlement for Walmart Chile.

Comparable sales for the company’s US business were up by 11.7% on a two-year stack, driven by strong private brand sales and higher average ticket.

Its e-commerce sales in the quarter grew by 12%, while its international net sales increased by 5.7% to $24.4bn.

In addition, Walmart US recorded net sales of $105.1bn in Q2 2023, up by 7.1% YoY.

Walmart president and CEO Doug McMillon said: “We’re pleased to see more customers choosing Walmart during this inflationary period, and we’re working hard to support them as they prioritise their spending.

“The actions we’ve taken to improve inventory levels in the US, along with a heavier mix of sales in grocery put pressure on profit margin for Q2 and our outlook for the year.

“We continue to build on our strategy to expand our digital businesses, including the continued strength we see in our international markets.”

Walmart has maintained its outlook for the second half of FY23, expecting to record a 4.5% growth in consolidated net sales.

Last month, the retail giant reduced its Q2 and full-year profit outlook for the year in response to the rising cost of food and fuel.

It also recently confirmed it would cut around 200 corporate jobs as part of a company-wide restructuring effort.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.