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BENTONVILLE, Ark. — Walmart today topped estimates for its fiscal third-quarter earnings on strong grocery sales and gains in its e-commerce business.
The retailer posted net income of $453 million, or 17 cents a share, in the 13 weeks to October 27. That compares to a $1.8 billion loss in the year-earlier quarter due to settlement of legal challenges related to the opioid crisis.
Walmart provided a slightly lower-than-expected forecast for the current quarter, however, citing signs of weaker consumer spending.
“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 McMillan, Walmart’s president and chief executive officer. “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.”
Walmart reported consolidated revenue of $160.8 billion, an increase of 5.2% from a year ago, and up 4.3% on a constant-currency basis.
Walmart’s consolidated gross margin rate increased by 32 basis points on improvement at its Walmart U.S. unit and the timing of Flipkart’s The Big Billion Days sales event, which last year occurred in the fiscal fourth quarter.
Comparable sales at Walmart U.S. increased 4.9% in the third quarter. Customer transactions rose 3.4% and average ticket grew 1.5%.
E-commerce at the U.S. unit was up 24%, driven by gains in its delivery and curbside pickup services. Global e-commerce sales increased 15% year over year.
Sam’s Club comp sales increased 3.8% and the membership income was up 7.2%.
Walmart International posted net sales were $26.7 billion, an increase of 5.4% in constant currency.
Revenue at advertising business,, Walmart Connect, increased 26% from a year ago.
Walmart said it continued to add subscribers to its Walmart+ subscription program, which offers benefits including early access to special offers and deals, free grocery deliveries, free shipping on all orders, and other perks. The company added a new subscription service during the third quarter that allows hoppers to receive regular shipments of food, paper products, pet supplies and other merchandise.
Also during the quarter the company announced the opening of its first Pet Services center, in Dallas, Ga., providing veterinary care and grooming services in-store.
For the full fiscal 2024, Walmart now expects adjusted earnings per share of $6.40 to $6.48. That’s lower than the $6.48 analysts expect but higher than Walmart’s previous estimete. Walmart expects consolidated net sales will rise 5% to 5.5%, also an increase from its prior range
