Consolidated net income attributable to Walmart dropped 2.2% year-over-year to $1.71 billion. On a GAAP basis, EPS totaled $0.58 while on an adjusted basis, EPS was $1.08. Analysts had projected adjusted EPS of $1.01.
Comparable sales grew 3.4% in Walmart US and 3.2% in Sam’s Club. US ecommerce sales grew 43% during the quarter. Grocery pickup is now available in around 2,100 locations and grocery delivery is available in around 600 locations, signalling progress in Walmart US omnichannel.
Walmart US saw comp sales increase across all its categories in the low to mid-single digits, driven by strength in food and consumables, pharmacy and apparel. Walmart International posted comp sales growth in nine out of ten markets, including Mexico, China, Canada and the UK. Comp sales growth at Sam’s Club was broad-based across major categories despite seeing a negative impact of 250 basis points from tobacco.
The company revised its guidance for the full year of 2019 and now expects comp sales, excluding fuel, at Walmart US to grow at least 3% versus the previous guidance of about 3%.
GAAP EPS is now expected to come in the range of $2.26 to $2.36 versus the previous outlook of $2.65 to $2.80. Adjusted EPS is expected to be $4.75 to $4.85 versus the prior range of $4.65 to $4.80.