America's most popular retailer, Walmart, released its financial results on August 15th, showing a staggering increase in revenue and sales. However, emissions were only slightly up from a baseline in 2015. Still, the company has managed to balance profits and sustainability in a commendable way.
Walmart Q2 2025: Revenues Increase, E-Commerce Booming!
Walmart Inc. reported second-quarter 2025 revenues increased 4.8% to $169.3 billion. E-commerce sales grew an astounding 21% worldwide, reflecting Walmart's expanding digital reach. The company's operating income increased 8.5% and adjusted operating income increased 7.2%. The growth was driven by improved gross margins, higher membership revenue and lower e-commerce losses.
The press release further noted that Walmart's GAAP EPS was $0.56. Adjusted EPS, which excludes the net loss on stocks and other investments, was $0.67. This beat analysts' expectations of $0.65, representing a surprising surprise of 3.08%.
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Key Performance Indicators
- U.S. Same-Store Sales: Walmart US increased 4.2%, beating the average estimate of 3.5%.
- Walmart international sales growth: Up 7.1%, slightly below expectations of 7.7%.
- Sam's Club same-store sales: Up 5.2%, beating the 4% increase expected.
- Total U.S. same-store sales: Increased 4.3%, beating expectations of 3.7%.
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Looking ahead, Walmart expects third-quarter net sales to grow between 3.25% and 4.25% and operating profit to increase 3.0% to 4.5% on a constant currency basis. For fiscal 2025, net sales are expected to grow 3.75% to 4.75% and adjusted operating profit to increase 6.5% to 8.0%.
Overall, Walmart's strong performance across various segments, including e-commerce and memberships, highlights the company's robust business model and positive outlook.
Despite ambitious net-zero target, emissions rise slightly
Walmart is committed to achieving zero emissions (Scope 1 and 2) from its global operations by 2040. The company aims to limit warming to 1.5 degrees Celsius, with intermediate goals of reducing Scope 1 and 2 emissions by 35% by 2025 and 65% by 2030, compared to 2015 levels.
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Since 2015, Walmart has reduced its Scope 1 and Scope 2 emissions by 21.2%, and its carbon intensity by 43.5%. However, in 2022, Scope 1 emissions increased by 7.6% and Scope 2 emissions increased by 0.3% (market basis), resulting in a total emissions spike of 4.1%. The slight increase in emissions is due to increased on-site fuel use, changes in transportation, and slower expansion of renewable energy. So how does Walmart plan to reduce its emissions? Find out below.
Renewable Energy and Energy Efficiency
Walmart plans to expand solar power generation in the coming years, with over 600 renewable energy projects in over 10 countries by the end of 2022. The company has secured over 2GW of renewable energy PPAs, making it the top retailer in terms of green power. The company is focused on community solar projects for low- to moderate-income areas and supports various renewable energy projects through coalitions.
Speaking of efficiency, we are optimizing energy usage through real-time monitoring and upgrading older equipment to energy-efficient systems, and we aim to install energy meters in our stores across the US.
Electrifying transportation
In 2022, Walmart's vehicles accounted for 24% of its Scope 1 emissions. That's why going 100% electric with its fleet, including Class 8 trucks, has become essential to reaching its net-zero goal. While the company doesn't have plans to dramatically reduce its emissions, it is adopting zero-emission technologies, scalable solutions, and implementing supporting policies.
Addressing stationary fuel emissions
In 2022, stationary fuels represented 23% of Walmart's Scope 1 emissions, up 21% from 2021. Cold weather in the U.S., drought in China and power outages in South Africa increased reliance on heating and backup generators. These challenges highlight the need for increased energy efficiency and cleaner electricity. Walmart is responding by adding electric hookups to its refrigerated trailers to reduce diesel fuel use.
On-site refrigerant mitigation
In 2022, 53% of Walmart's Scope 1 emissions were from on-site refrigerants. Walmart reduced its global refrigerant emissions by 2% through leak management using low GWP (global warming potential) systems. It has worked diligently on equipment maintenance to minimize leaks and replaced outdated systems with low GWP alternatives such as CO2 and ammonia.
Emissions reduction through the Gigaton Project
Through Project Gigaton, Walmart helps suppliers set and achieve emissions reduction goals. The initiative, which launched in 2017, provides guidance, workshops and resources to support these efforts. Additionally, the company aims to reduce or avoid 1 billion tons of CO2e in its product value chain by 2030. That's why the company works with organizations like the World Wildlife Fund and the Environmental Defense Fund. Notably, last year, more than 175 million tons of CO2e were avoided through Project Gigaton.
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Finally, Walmart President and CEO Doug McMillon praised the initiative, saying:
“Our team delivered another strong quarter. Every day, our team members work hard to save our customers and members time and money. Every part of our business is growing. Store and club sales are up, e-commerce is growing even more with the addition of curbside pickup and is growing even faster with our improved delivery speeds. New businesses like Marketplace, Advertising and Membership are also contributing, helping to diversify revenue and strengthen the resilience of our business model.”