Walmart's e-commerce and advertising revenue growth surpassed Amazon in the second quarter

According to foreign media reports, compared with its main competitor Amazon, Walmart has achieved good results in both e-commerce and advertising revenue . It also exceeded Wall Street 's profit expectations for the second quarter and gave a more optimistic annual forecast after significantly lowering its expectations three weeks ago .

Walmart CEO Doug McMillon said on Tuesday that Walmart successfully achieved performance revenue that exceeded expectations in the second quarter due to multiple factors such as the back-to-school season, lower fuel prices and the influx of high-income people into the platform.

Walmart's global e-commerce revenue rose 12% in the second quarter, compared with a 1% increase in the first quarter. In contrast, Amazon's e-commerce revenue grew only 7% in the second quarter.

Walmart also said that its advertising revenue grew by nearly 30% in the second quarter , which was lower than the more than 30% growth in the first quarter, but still much higher than Amazon's 18% advertising revenue growth.

“I can’t recall any business at Walmart having the margins that we have in advertising, and the nearly 30% growth in the quarter really surprised me,” McMillon said on a conference call.

McMillon added that he hopes the recent partnership with Paramount Pictures will attract more Walmart+ members and offset the negative impact of the economic downturn.

John Furner, CEO of Walmart U.S., said that according to surveys, in addition to logistics and delivery, what Walmart members want most is entertainment benefits.

Walmart’s optimism shows the company is gradually adapting to consumers’ changing spending habits. On July 25, the company cut its profit forecast, shocking investors and raising concerns about a broader economic downturn. Surging U.S. inflation has forced shoppers to pay higher prices for necessities, hurting sales of high-margin items and forcing Walmart to cut prices on apparel and other items.

Walmart shares were down 8.4% this year through Monday, lagging the S&P's 1.6% loss.

Walmart said Tuesday that it earned $1.77 per share in the second quarter , beating the $1.63 analysts had forecast according to Bloomberg. Walmart said sales rose 8.4% to $152.9 billion in the second quarter ended July 31. Analysts had forecast $151.1 billion.

Walmart forecast that for the full year, earnings per share will fall by no more than 11%, compared with the 13% decline it warned of last month. Walmart said operating income would also fall less than expected. The company reiterated its forecast for comparable sales at its U.S. stores, excluding fuel, to rise 3% in the second half of the year.

Walmart's profit warning last month was the second time the company has cut its annual forecast. In May, Walmart said earnings per share would fall by about 1%. In February, the company had forecast a small increase.

According to the data, Walmart's current expectations for the second half of the year are more optimistic than before, which shows that the US economy has begun to recover after experiencing a series of blows. As inflation eases, consumers' willingness to shop will gradually recover.

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