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Walmart posts revenue growth in Q3

Walmart reported strong revenue growth of $160.8 billion and raised its net sales guidance for FY24.
Sandra Levy
Senior Editor

Walmart announced third quarter results, including strong revenue growth of 5.2%. The company’s omnichannel model continues to resonate with customers helping to deliver strong comp sales, including 4.9% for Walmart U.S. 

The retailer reported GAAP EPS of17 cents; Adjusted EPS of $1.53.

“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 and 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."

[Read more: Walmart kicks off Black Friday deals with ‘Mean Girls’ inspired campaign]

Third quarter highlights:

  •  Consolidated revenue of $160.8 billion, up 5.2%, or 4.3% in constant currency 
  •  Consolidated gross margin rate up 32bps positively affected by a slight improvement for Walmart U.S. and timing of Flipkart’s The Big Billion Days event, which flipped from Q3 last year to Q4 this year 
  • Consolidated operating expenses as a percentage of net sales down 182bps, lapping a discrete charge from last year. On an adjusted basis, up 37bps on variable pay expenses and store remodels
  •  Consolidated operating income up $3.5 billion, or 130.1%, adjusted operating income up 3% positively affected by the impact of currency and LIFO of 2.7% and 1.9%, respectively
  •  Global advertising business grew approximately 20%, affected by BBD moving to Q4. Walmart Connect was up 26%, Sam’s Club MAP up 27% 
  • Walmart U.S. comp sales up 4.9% and e-commerce up 24%, led by pickup & delivery 
  • Adjusted EPS of $1.53 excludes the effects, net of tax, of $1.36 from net losses on equity and other investment

Walmart International:

  • Net sales were $26.7 billion, up 5.4% in constant currency
  •  Growth in net sales cc led by Walmex and China  
  • Timing of BBD affected Q3 growth and will benefit growth for Q4
  • E-commerce sales declined 3%, while advertising grew 4%; both affected by the timing of BBD  Other than India, strong growth in e-commerce sales and increased penetration across markets 

◦ Growth in e-commerce sales and advertising for 2H expected to be similar to 1H 

  •  Gross margin rate increased 151 bps, mostly due to the timing of BBD 
  •  Operating expense deleverage of 75 bps, mostly due to the timing of BBD 
  •  Operating income cc up 10.7% with strength across markets

[Read more: Walmart makes sensory-friendly shopping hours a permanent addition]

Sam’s Club U.S.:

  • Comp sales were up 3.8%
  • Solid comp sales, led by food and consumables and health care as well as positive unit growth overall 
  • Gained dollar and unit market share in grocery and general merchandise categories including apparel and automotive
  • Growth in e-commerce of 16% led by curbside and delivery 
  • Strong growth in membership income, up 7.2%, with record total membership and Plus penetration at quarter end 
  • Advertising business up 27% with record number of advertisers investing with MAP

Walmart raised its net sales guidance for FY24 to be in the range of 5% to 5.5%, as well as its  adjusted EPS, which it expects to be in the range of $6.40 to $6.48. 


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