Here is what Walmart International CEO Doug McMillon had to say about Walmart Canada’s Q2 results in this morning’s earnings call:
“And for Canada…Walmart Canada had solid sales growth in the second quarter of this year, with operating income growing faster than sales. Net sales grew 5.0 percent in the second quarter compared to last year, primarily due to the Supercentre expansion program and strong sales in many merchandise categories. Second quarter comparable sales increased 1.2 percent from last year. Average ticket increased 2.1 percent for the second quarter, and traffic declined 0.9 percent for comparable stores.
Gross profit as a percentage of sales increased 62 basis points from last year, as Canada’s merchants continue to be very focused on inventory management. Expenses as a percentage of sales increased only 31 basis points from last year, primarily from the increase in costs from growing Walmart Canada Bank.
Walmart Canada has been successful in managing its expenses by placing a significant focus on enhancing Supercentre productivity, and this contributed to the 10.0 percent increase in operating income from last year. Canada’s Supercentre presence continues to grow at a faster rate.
In addition to 9 store expansions and 9 in-box conversions this year, we expect to open about 40 new Supercentres this year. Currently, just over 8 million customers a week visit our Canadian stores. Our goal is to have customers shop the entire store, and we’re working on further strengthening all of our merchandise categories. In the past 12 months, we opened 10 new stores in Canada, bringing our store count to 329 stores.”