BENTONVILLE, Ark. — Walmart posted third quarter sales and earnings that topped expectations, and the company raised its outlook for the year.
Comp sales at Walmart U.S. grew 9.2% versus the prior year period, with 15.6% increase on a two-year stack basis. Walmart U.S. eCommerce sales grew 8% for the quarter and 87% on a two-year stack. Total revenue was $140.5 billion, up 4.3%, negatively affected by approximately $9.4 billion related to divestitures. Excluding the impact of currency valuations, total revenue would have increased 3.3% to $139.2 billion.
Other highlights of its third quarter results included:
- Sam’s Club comp sales increased 13.9%, and 25% on a two-year stack. E-commerce sales grew 32%. Membership income increased 11.3%, which is the fifth consecutive quarter of double-digit growth.
- Walmart International net sales were $23.6 billion, a decrease of $5.9 billion, or 20.1%, negatively affected by $9.4 billion related to divestitures. Changes in currency exchange rates positively affected net sales by approximately $1.3 billion. Flipkart, China, and Mexico delivered strong growth in eCommerce.
- Consolidated gross profit rate decreased 42 basis points, primarily due to increased supply chain costs, a higher mix of lower margin fuel business in the U.S. and a shifting international format mix.
- Consolidated operating expenses as a percentage of net sales declined 4 basis points reflecting strong sales growth and lower expenses for COVID-19, offset by investments in wages.
- Consolidated operating income was $5.8 billion, an increase of 0.2%, negatively affected by $0.4 billion related to divestitures, or about 750 basis points.
“Our momentum continues with strong sales and profit growth globally,” Walmart president and CEO Doug McMillon said. “Our omnichannel focus is pushing digital penetration to record levels. We gained market share in grocery in the U.S., and more customers and members are returning to our stores and clubs around the world. Looking ahead, we have the people, the products, and the prices to deliver a great holiday season for our customers and members.”
With the release of its third quarter results, Walmart raised its full-year guidance. The company is now projecting Walmart U.S. comp sales above 6%, excluding fuel. The company also forecasts that earnings per share will be around $5.00, and adjusted earnings per share will come in around $6.40, which is up compared to the prior guidance of $6.20 to $6.35. The company said capital expenditures for the year are projected to be around $13 billion.