Walmart Inc. (NYSE:WMT) Q2 2024 Earnings Call Transcript

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So having that data, go to work with our own large language models, and using large language models from others, presents a tremendous opportunity. And I think it will unlock a lot of use cases on the customer member side. As I mentioned in the prerecorded remarks, the opportunity with associates is also terrific. The supply chain is the third area that comes to mind. So, I think, this will be an opportunity for us for a really long time to try, and grow top line and be more efficient as a company by putting that technology to work.

John David Rainey: I’ll take the first part of your question on guidance and maybe start on holiday, before I turn to the segment CEOs. But on our assumptions on ticket and traffic, well, we saw a pretty equal balance between those in the second quarter, both were up, call it, roughly 3%. It would stand the reason that as we get into the back half of the year, and we lap some of these – some of the higher inflation from last year, that ticket in terms of balance between those two. We may see a little less in ticket. But we’re really encouraged by, as we noted, the strength in units that we had in the quarter. So pleased about that. And again, we’re gaining share here. So, I think our value proposition is resonating. With respect to the holiday, I’ll just say one comment, maybe turn it to John.

Consumers are not compromising on some of the holiday seasons. They’re being choiceful in their spending, discerning. But around July 4 and some of the other holidays that we’ve seen, they’re showing a willingness to spend. And we’re – our team is leaning into that, providing merchandise that they want to buy.

John Furner: They are – John David. And we’ve talked about this for a while that the flexibility in terms of what we offer is meaningful for customers. And the transaction growth. We’re proud of the team. We saw that in eCommerce. We mentioned marketplace. Pickup and delivery have been strong. In-store traffic and transaction count has also been strong. So having an offering that’s there for the customer. However, they want to shop, whenever they want to shop is helping us. And having as many locations as we do certainly is an important part of the equation when it comes to delivering. The last thing I would say is, is in general merchandise, and other categories where we have seen a number of rollbacks this year that are quite intentional.

The results are really strong, whether it’s the Justice 17-ish backpack or the Frito-Lay multi-pack from general merchandise to food, we are seeing rollbacks work across the business and customers are responding. They’re choiceful. They’re being thoughtful about what they buy, and our merchants have done a nice job of leaning in seasonally to ensure that our rollbacks are in the right places for the customer.

Operator: Our next question comes from the line of Rupesh Parikh with Oppenheimer. Please proceed with your question.

Rupesh Parikh: Good morning, and thanks for taking my question. So, I wanted to go to the international business in China specifically. I was hoping to get more color in terms of what you’re seeing in the market. Now for the second consecutive quarter in a row, your results seem to stand out versus some of the weaker macro data points that we’re seeing out there in China.

Judith McKenna: Hi. Yes. Thank you. I mean, the quarter was strong for international overall. And as you heard both John David and Doug mentioned, China was one of the stronger markets that we had along with Walmex, which had a 10% growth. And both of our businesses in India, Flipkart and PhonePe, both had strong quarters as well. A lot of that is driven from just really being close to the customer in those markets and the combination of value and convenience that we’re now able to offer. Turning to China specifically, I actually got back to China this quarter for the first time in 3.5 years. What really struck me when I was there was the speed with which the consumer has moved. So, the move to online and digital penetration has been extraordinary in our business.

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