Wal-Mart Stores Inc. ( WMT ), a major global retailer, said second-quarter comparable sales increased 1.8% from the prior-year quarter, marking the 12th consecutive quarter with positive comp sales.
The company reported revenues of $123.4 billion during the three months ending July 31, up 2.1% from the prior-year quarter. Robust e-commerce growth in the U.S., led by organic growth through Walmart.com, contributed to higher overall company revenue growth.
Company strengthens retail position with e-commerce acquisitions
CEO Doug McMillon said Walmart is "moving faster and becoming more creative" in facilitating the daily life of busy families. McMillon highlighted three e-commerce acquisitions in the earnings call: outdoor gear retailer Moosejaw, footwear and accessories retailer Shoebuy and stylish menswear retailer Bonobos. Marc Lore, CEO of Walmart's U.S. e-commerce division, delivered a gross merchandise volume growth of 67% during the quarter, driven by strong "innovative solutions" that provide a "seamless shopping experience" for customers.
Internationally, Walmart posted positive comp sales in nine of the 11 markets, including China and the U.K. Walmart's alliance with JD.com Inc. ( JD ) allows Chinese customers to expedite delivery orders through the "JD Daojia" (Chinese for "To Home") platform. McMillon also expressed encouragement in U.K. stores like Asda and Heston, saying customers are "visiting the stores more often and increasing their basket sizes."
Company reiterates strong outlook for the year
Walmart reiterated its strong earnings guidance for fiscal 2018: the company expects GAAP earnings between $4.18 and $4.28 per share and adjusted earnings between $4.30 and $4.40 per share. The company has two positive investing signs: high Piotroski F-scores and consistent revenue growth. Based on these metrics, GuruFocus ranked Walmart's financial strength a 6 and its profitability a 7. These ranks suggest the company has a strong business with good growth potential.
This article first appeared on GuruFocus .
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