In the fiscal second quarter, analysts expect Walmart’s (WMT) net sales to rise 2.2% YoY (year-over-year) to $126.1 billion. Continued growth in its US and international business is expected to support its top line, and digital expansion is expected to drive traffic.
However, the closure of 63 Sam’s Club stores and removal of tobacco from some locations is projected to hurt Walmart’s top-line growth. Also, divestitures and currency rates could remain a drag.
Walmart’s top line is anticipated to benefit from continued strength in its US business segment. Walmart’s US comparable store sales have improved for 15 quarters straight, and the company is projected to sustain this momentum in the fiscal second quarter.
Walmart’s US comps have been supported by its digital initiatives, including the expansion of its online grocery pickup service. Also, value pricing has driven traffic. Target’s (TGT) and Costco’s (COST) comps have also improved—in fact, Costco’s growth has outpaced Walmart’s and Target’s.
Walmart’s top line is projected to benefit from international sales improving. Strategic measures, including store remodeling, digital expansion, price investments, supply-chain reinvention, and the addition of exclusive brands, are expected to support Walmart’s top line in the fiscal second quarter.