Comps, E-Commerce Drive Walmart's Q3 Revenue Growth
Strong growth in comparable store sales along with a double-digit increase in e-commerce sales in the U.S. were key factors in Walmart reporting strong results for its fiscal year third quarter.
Company-wide revenue increased 5.2% to $160.8 billion. Consolidated operating income rose 130.1% to 6.2 billion with adjusted earnings per share up 2% to $1.53. The retailer’s inventory levels decreased $0.8 billion to $64 billion. Comparable store sales in Walmart U.S. (exclusive of fuel) were up 4.9% and e-commerce sales grew 24%, led by pick & delivery.
“We had strong revenue growth across segments for the quarter, and we’re excited to get an early start to the holiday season,” said Doug McMillon, president & CEO of Walmart. “From a Thanksgiving meal that costs less than last year, to great prices on fashion, toys, electronics, and seasonal decorations, we’re here to help families from around the world make this a special time. Looking ahead, our inventory is in good shape, the teams are focused, and our associates are ready to serve our customers and members whenever and however they want to be served.”
By division, net sales at Walmart U.S. were $109.4 billion, an increase of 4.4% over the comparable quarter the previous year. Transactions were up 3.4% and average ticket grew 1.5%. Sales strength was led by grocery and health & wellness while sales of general merchandise declined slightly.
At Sam’s Club, net sales in the quarter were $22 billion, up 2.8% year-over-year. Comparable store sales (excluding fuel) were up 3.8%. Transactions grew 4% but the average ticket declined 0.2%. The warehouse club gained dollar and unit market share in grocery and general merchandise categories including apparel and automotive. Comparable store sales growth was also driven by food and consumables along with healthcare-related products.
Walmart’s International Division net sales were $28 billion, an increase of 10.8% year-over-year.
Looking toward its fiscal year 2024, Walmart is forecasting a net sales increase of between 5% and 5.5%. Adjusted EPS is expected to land between $6.40 and $6.48.
