Walmart delivered another solid set of results in Q2, with accelerating sales growth benefiting from the broad consumer and macro trends.

The company’s revenues for the quarter ended July 31 rose 4.8 per cent to $177.4 billion (up 5.6 per cent in constant currency), extending the 2.5 per cent increase in the first quarter.

Comparable sales (excluding fuel) increased 4.6 per cent, with transactions up 1.6 per cent and average ticket up 3.1 per cent.

“Value is still en vogue. That’s the key message from Walmart, which has delivered another strong set of numbers across the board,” commented GlobalData MD Neil Saunders. “Given Walmart’s huge size and scale, that’s an impressive uplift that underlines the operational prowess of the retail giant.”

According to the analyst, the macro environment remains favorable to Walmart, with consumers wanting to maximize bang for their buck. 

“But value, which is so important to the American consumer right now, is about more than just low prices. Walmart has those, of course – it has always been an everyday low-price retailer – but it has more recently complemented them with improvements to stores, the assortment, and own brands,” he added.

The retailer managed to pull a wider spread of customers, including those from higher income segments, and got them to shop more deeply across its ranges, which was partly reflected in the stronger general merchandise numbers, Saunders said.

On the e-commerce side, the company added another impressive performance with global digital revenues up 25 per cent, including healthy lifts from the US business. The retail media business also delivered good numbers with revenue up 46 per cent, including a 31 per cent jump in Walmart Connect US.

On the bottom line, operating income decreased 8.2 per cent, affected by discrete legal and restructuring costs. Consolidated net income rose 56 per cent to $7 billion.

Walmart has raised its outlook for the full year, expecting net sales to increase 3.75-4.75 per cent, compared to the prior range of 3-4 per cent. 

According to Saunders, while some of the sales growth will be driven by inflation, it is still a very respectable gain. 

“On the tariff front, we believe that Walmart is in a significantly better position to deal with these than many other retailers, thanks to its buying power, its operational excellence, and its more diversified revenue streams. This will allow Walmart to continue to succeed even in a more challenging environment,” he added.