Walmart Inc.WMT
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Walmart Connect advertising grew 44%, a high-margin business driving profitability.
Impact on stocks 1
Consumer Staples
Walmart Inc.Walmart's advertising division, Walmart Connect, grew 44% last quarter, its fastest pace since the company began reporting the metric, as core retail growth slows. Analysts say Walmart Connect, which represents a modest portion of sales, generates around a third of operational income and has gross margins of about 70%. U.S. same-store sales growth decelerated to 4.1% last quarter, and analysts predict it will dip below 4% when Walmart reports earnings on Thursday. The company is also growing the business with AI tools, its Sparky shopping assistant, and the Vizio platform.
Walmart Inc.Walmart Connect advertising grew 44%, a high-margin business driving profitability.