On Tuesday, Walmart Inc. (WMT) reported a robust fiscal third quarter for the year, surpassing Wall Street’s expectations with sales reaching $169.59 billion against the anticipated $167.5 billion. Notably, the company’s adjusted earnings per share came in at $0.58, outperforming the consensus forecast by 5 cents. CEO Doug McMillon emphasized the strength of the quarter, pointing out continued momentum across various operational aspects. In the US, in-store volumes grew, while the pickup and delivery services from store locations expanded even more rapidly.
This positive financial performance was immediately reflected in the stock market, with Walmart shares jumping over 4% to $87.80 in premarket trading on the announcement day. The stock has enjoyed a remarkable year-to-date increase of 60%, far exceeding the Dow Jones Industrial Average’s (^DJI) 15% rise.
Delving into the specifics, overall same-store sales saw a growth of 5.5%, outstripping the forecasted 3.81%. The U.S. operations specifically experienced a 5.3% growth in same-store sales, against an expected 3.68%. Store traffic increased by 3.1%, better than the anticipated 2.82%, and ticket growth was 2.1%, exceeding the predicted 1.20%. E-commerce saw a significant jump with a 22% growth, far above the expected 2.22%. Sam’s Club, under the Walmart umbrella, reported a same-store sales growth of 7.0%, which was much higher than the projected 4.22%.
Looking ahead, Walmart remains optimistic, signaling that this momentum is set to carry into the holiday shopping season. They’ve revised their guidance for fiscal year 2025 for the third time, now expecting net sales growth to be between 4.8% and 5.1%, previously forecasted between 3.75% and 4.75%. Adjusted operating income is expected to grow by 8.5% to 9.25%, up from the earlier guidance of 6.5% to 8.0%. Full-year adjusted earnings per share are now projected to be between $2.42 and $2.47, above the high end of the previously expected range of $2.35 to $2.43.
Walmart’s latest figures showcase not only a robust operational strategy but also an adept response to shifts in consumer behavior, particularly in digital and convenience services sectors. This performance positions Walmart as not just keeping up with retail trends but potentially leading them.
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