Walmart Inc. stock research
FY2024 Q2
Walmart (WMT) Gross Margin — Quarter Ended Jul 31, 2023
Revenue grew compared to both the prior quarter and the same quarter last year, while cost of revenue increased at a slower pace, resulting in a gross profit that expanded and a gross margin that improved. The gross margin strengthened sequentially versus the immediately preceding quarter and also showed improvement relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jul 31, 2023 · FY2024 Q2
Revenue grew compared to both the prior quarter and the same quarter last year, while cost of revenue increased at a slower pace, resulting in a gross profit that expanded and a gross margin that improved. The gross margin strengthened sequentially versus the immediately preceding quarter and also showed improvement relative to the same quarter one year earlier.
- The strongest observable driver is the consistent year-over-year and sequential improvement in gross margin, supported by revenue growth outpacing the increase in cost of revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all moved higher. Relative to the same quarter one year ago, revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.0%
Gross profit
$38.4B
Revenue
$160.3B
Cost of revenue
$121.8B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 31, 2023 | $162.7B | $37.3B | $125.4B | 22.9% |
| Apr 30, 2023 | $151.0B | $35.7B | $115.3B | 23.7% |
| Jul 31, 2023 | $160.3B | $38.4B | $121.8B | 24.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2023
+0.3 pts
Year-over-year change
Jul 31, 2022
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the consistent year-over-year and sequential improvement in gross margin, supported by revenue growth outpacing the increase in cost of revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all moved higher. Relative to the same quarter one year ago, revenue and gross profit were higher, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as any shift in this relationship could alter gross margin trends.