Walmart posted strong growth across its business in Q2 of its fiscal 2025, which ended July 26, 2024. With gains in total revenue, ecommerce sales, membership rolls and the Walmart Connect advertising business, the retailer has raised its guidance for Q3 and full-year outlook.
The company’s consolidated revenue of $169.3 billion for the quarter reflects a 4.8% increase from the same quarter last year. Ecommerce penetration improved by double-digits, including a 21% increase in online sales globally and growth of 22% in the U.S. Comp sales in the U.S. also were up 4.2%.
The retailer also posted share gains across income cohorts primarily driven by “upper-income households” (designated as those earning more than $100,000 annually). These affluent shoppers in particular have been drawn to the Walmart+ subscription, which saw a 16% boost in membership this quarter.
Walmart’s retail media network Walmart Connect also posted massive gains with advertising sales growing 30% in the U.S., largely driven by “strong growth in advertiser counts, including marketplace sellers.” Globally, the company’s advertising business grew 23%, led by Flipkart in India and Walmex in Mexico and Central America.
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“Each part of our business is growing — store and club sales are up, ecommerce is compounding as we layer on pickup and even faster growth in delivery as our speed improves,” said Doug McMillon, President and CEO of Walmart, in a statement. “Our newer businesses like marketplace, advertising and membership, are also contributing, diversifying our profits and reinforcing the resilience of our business model.”
In an interview with CNBC, Walmart CFO John David Rainey said that from his vantage point, the back-to-school season was “off to a pretty good start.”
Rainey added: “We see, among our members and customers, that they remain choiceful, discerning, value-seeking, focusing on things like essentials rather than discretionary items, but importantly, we don’t see any additional fraying of consumer health.”
