Walmart shares are almost 10% higher in the US Thursday, after the US grocer reported a stellar second quarter performance, boosted by strong gains in the eCommerce sector. Walmart stuck to its full year forecast and is anticipating 40% eCommerce sales growth over the course of the 2018/19 financial reporting year.
By 1630 BST, Walmart shares were 9.47% higher at $98.79. The stock has been moving broadly higher in recent weeks.
Walmart Q2 earnings
Walmart’s Q2 earnings report showed that total revenues over the period hit $128 billion, above expectations and 3.8% higher than the same period a year earlier. Walmart International net sales, meanwhile grew 4% to $29.5 billion.
However, it wasn’t all positive numbers. Total net income fell 3.7% to $5.8 billion.
That drop was more than made up for by a jump of 40% in online US sales at the grocer. That suggests the major investment the business has made to its online presence, which includes a site redesign, is paying dividends.
“Thanks to the hard work of our associates, we had a great quarter with strong results and momentum across the business,” said Walmart CEO and President, Doug McMillon.
“We’re pleased with how customers are responding to the way we’re leveraging stores and eCommerce to make shopping faster and more convenient. We’re continuing to aggressively roll-out grocery pick-up and delivery in the US and we recently announced expanded omni-channel initiatives in China and Mexico,” he added.
Outlook remains upbeat
Alongside the upbeat Q2 performance, Walmart said it continues to expect a strong 2018-19 full year performance.
It expects full-year net sales growth of around 2%, a slightly improved outlook from a 1.5%-2% gain, previously. Walmart’s also continuing to expect full fiscal year 2019 eCommerce sales growth of 40%.
“Customers have choices and we’re making it easier than ever for them to choose Walmart,” McMillon said.