Walmart fast delivery helps fuel 24% growth in e-commerce sales

Walmart credited its fast delivery and e-commerce growth for a 5.9% revenue increase in the second quarter, with online sales surging 23% year-over-year. Domestic e-commerce sales climbed 24%, while Walmart U.S. deliveries from local stores jumped 43%. Marketplace net sales grew over 50%. Using local stores as fulfillment centers and freelance drivers through its Spark app, Walmart achieved rapid delivery on a wide range of products.

Expedited delivery, under three hours, accounted for 37% of store-fulfilled orders, and 70% of online orders received the same-day delivery. E-commerce now makes up over 23% of Walmart U.S.'s revenue, double from five years ago. Sam's Club saw a 26% increase in e-commerce sales with strong pickup-and-delivery growth. Internationally, e-commerce sales expanded 19%, driven by China, India, and Canada.

Walmart aims to serve 60% of the U.S. population within 30 minutes, a capability Amazon is also pursuing. CEO John Fulner emphasized the company's speed as an acquisition strategy, noting that customers using fast delivery shop more frequently and are more likely to become Walmart+ members. Walmart's supply chain and automated distribution centers contributed to this growth, processing more than half its e-commerce fulfillment volume through automated centers.

Q2 revenue reached $187.9 billion, surpassing Wall Street estimates and prompting a full-year guidance increase. Adjusted earnings per share were 81 cents, up from 68 cents a year earlier. Operating income grew 17%, excluding currency fluctuations. A $2.9 billion U.S. government tariff refund improved profit margins. Despite strong numbers, Walmart shares fell over 9% in late trading, as investors questioned comparable sales and sales guidance for the next quarter and year.