US retail giant Walmart has reported its results for the second quarter of fiscal 2015, with year-on-year improvements in both net sales and consolidated net income.
Consolidated net sales for the second quarter were US$119.3bn, the group noted, an increase of 2.8 per cent over last year. On a constant currency basis, net sales would have increased 3.4 per cent to US$120bn.
Meanwhile, consolidated net income attributable to Walmart was US$4.1bn, an increase of 0.6 per cent, while diluted earnings per share (EPS) from continuing operations attributable to Walmart were US$1.21, or 1.6 per cent below last year’s US$1.23.
However, Walmart updated full year EPS guidance to a range of US$4.90 to US$5.15, from a previous range of US$5.10 to US$5.45 – a move it attributed to incremental investments in e-commerce and higher US health-care costs than previously anticipated.
“I’m pleased with our solid earnings per share performance,” said Doug McMillon, Wal-Mart Stores president and CEO. “As it relates to the positives from the quarter, I’m encouraged by the performance of our International business, our Neighborhood Market sales in the US and by our e-commerce growth.
'As it relates to our challenges in the quarter, we wanted to see stronger comps in Walmart US and Sam’s Club, but both reported flat comp sales,' he continued. Stronger sales in the US businesses would’ve also helped our profit performance.”
Walmart is continuing to invest in enhancing its e-commerce capabilities and McMillon pointed out the need to move quickly to serve customers more effectively.
“We see opportunities to improve in merchandising, pricing and store level service in our supercenters, and we are working to close those gaps,” added McMillon. “Our investments in e-commerce and mobile are very important, as the lines between digital and physical retail continue to blur. Our customers expect a seamless experience, and we’re working to deliver that for them around the world.”
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