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Walmart grows online and in stores

Walmart banner under a large plane

Photo: Robyn Beck/AFP via Getty Images

Walmart's revenue grew 8.4% in Q2, with the discount giant beating analysts' estimates both on sales and profit.

Why it matters: While the big box retailer's results were driven in part by higher prices and margins remain under pressure, its performance is outstripping that of other retailers.

By the numbers: Walmart specifically noted that e-commerce sales grew 12% and comparable sales for its flagship Walmart banner in the U.S. grew 6.5%.

  • Net income clocked in at about $5.1 billion, a 20% increase year over year.
  • Global advertising revenue was up 30% in Q2 as well.
  • Walmart shares were up 6% in Tuesday morning trading.

Between the lines: Walmart continues to steal pages from Amazon's playbook by offering new services outside its core retail operations, with its deal with Paramount+ the latest example.

  • But the behemoth still leverages its vast network of stores and warehouses, and its ability to offer lower prices to steal market share.
  • And while Walmart's e-commerce sales are growing, Amazon's declined 4% in the last quarter.

Yes, and: Amazon has had a difficult time replicating Walmart's success with physical stores, facing particularly stiff competition in grocery.

What they're saying: “The thing that impresses me about Walmart is that they were not content to just stay Walmart,” says Howard Meitiner, a managing director at restructuring advisory firm Carl Marks Advisors.

  • “All the strategic partnerships they are forming are impressive,” Meitiner says, citing the Paramount+ deal.
  • One of the advantages of scale, especially if there is a solid management team in place, is it allows the company to make investments to hedge against change, he adds.

👀 What we're watching: Meitiner predicts there will be an increasing number of collaborations and partnerships across the retail landscape in the coming months, mirroring that of Walmart.

  • Though late to the game, Macy's announced a collaboration with Toys R Us, for example.
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