Q2 2025 Walmart Inc Earnings Call Transcript
Key Points
- Walmart Inc (WMT) reported strong sales growth and exceeded expectations for the quarter.
- E-commerce sales grew about 20% for each segment and 21% overall, showing significant digital engagement.
- Global membership income grew 23%, with Walmart+ memberships up double digits and Sam's Club US achieving a record high member count.
- Advertising revenue grew 26%, driven by a 30% increase in Walmart Connect in the US.
- Automation and technology advancements, including the use of generative AI, are improving operational efficiency and customer experience.
- Despite strong performance, Walmart Inc (WMT) remains cautious about the economic and geopolitical uncertainties that could impact future results.
- Expense deleverage was noted, largely due to increased marketing and higher variable pay expenses tied to above-plan performance.
- The company is experiencing slight deflation in some areas, which could impact pricing strategies and margins.
- There is ongoing pressure from branded suppliers regarding cost increases, which Walmart Inc (WMT) is actively fighting against.
- The timing of festive events in international segments can affect year-over-year comparability and growth rates, adding variability to financial results.
Greetings. Welcome to Walmart's fiscal year 2025 second-quarter earnings call. (Operator Instructions) Please note this conference is being recorded.
At this time, I will now turn the conference over to Steph Wissink, Senior Vice President of Investor Relations. Steph, you may begin.
Thank you. Welcome, everyone. We appreciate you joining us and your interest in Walmart. Joining me today from our home office in Bentonville, our Walmart CEO, Doug McMillon; and CFO, John David Rainey. Doug and John David will first share their views on the quarter, and then we'll open up the line for your question.
During the question-and-answer portion, we will be joined by our segment CEOs: John Furner from Walmart US, Kath McLay from Walmart International, and Chris Nicholas from Sam's Club. For additional detail on our results, including highlights by segment, please see our earnings release and accompanying presentation on our way website. We will make every effort to answer as many
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