Walmart Q3 sales up 2.8% to $118 billion

BENTONVILLE, Ark. — Walmart Stores on Thursday reported consolidated net sales of $118.1 billion for the third quarter ended Oct. 31, representing an increase of 2.8% over last year. Walmart U.S. sales totaled $70 billion, up 3.4%. Sam's Club recorded $14.4 billion in sales, up 2.3%.

 

Consolidated net income attributable to Walmart was $3.7 billion, a decrease of 0.7%. "Walmart reported solid earnings per share of $1.15 in the third quarter," said Doug McMillon, Walmart Stores president and CEO. "The highlights for the quarter include the positive comp in Walmart U.S., including the strong performance from Neighborhood Markets, the 21% increase in e-commerce sales globally and the profit performances from Sam's Club and our International business."

 

McMillon stressed the need to strengthen Walmart's sales growth and improve the customer experience, both in stores and online.

 

"We're investing in key areas of our business, including wages in our U.S. stores and in e-commerce and mobile capabilities. We continue to see opportunities to improve our business," he added. "Being the price leader is an ongoing priority for us and a commitment to customers. As with every year, that is even more important during the holiday season. We have some things in our favor this fourth quarter, including lower fuel prices in the U.S. and other key markets, and we're set to deliver for customers during this time."

 

The company's e-commerce sales impact includes those sales initiated through the company's websites and fulfilled through the company's dedicated e-commerce distribution facilities, as well as an estimate for sales initiated online, but fulfilled through the company's stores and clubs. E-commerce sales positively impacted comp sales in Walmart U.S. by approximately 20 basis points, and positively impacted Sam's Club comp sales by approximately 20 basis points for the 13-week period.

 

Walmart U.S. recorded growth of 0.5% in comparable sales for the quarter, the company reported. Sam's Club comp sales totaled 0.4% higher. 

 

"We had several merchandise categories driving top-line growth," said Greg Foran, Walmart U.S. president and CEO. "I'm encouraged by our performance during key seasonal events. We had strong back-to-school results in apparel, home and school supplies, and we ended the quarter well by executing a strong Halloween event," he said. "Our 0.5% comp was the first positive comp in seven quarters. Our overall grocery comp, which includes food and consumables, was relatively flat," Foran added. "Comp sales were positively impacted by net inflation, but were negatively affected by SNAP-related headwinds.

 

Foran noted that Walmart's Neighborhood Market performance reported an approximately 5.5% comp for the quarter. "We continued to see sales increases in Neighborhood Market pharmacy and strong growth in consumables, as we focused on in-stock and optimizing the store with relevant offerings for the customer," he said.