DBT Bureau
Pune, 21 Nov 2024
Strong revenue growth of 5.5% with operating income growing faster at 8.2%
- eCommerce up 27% globally
- GAAP EPS of $0.57; Adjusted EPS of $0.58
- Company raises guidance for FY25
Walmart Inc. reported strong growth in revenue and operating income for the third quarter. Globally, eCommerce grew by 27%, with increased penetration across all segments. Walmart’s U.S. comparable sales rose 5.3%, driven by positive growth in general merchandise. Looking ahead, the company raised its guidance for FY25, expecting net sales growth of 4.8% to 5.1% and adjusted operating income growth of 8.5% to 9.25% in constant currency (cc).
Third-Quarter Highlights:
- Consolidated revenue of $169.6 billion, up 5.5%, or 6.2% (cc)
- Consolidated gross margin rate up 21 basis points, led by Walmart U.S.
- Consolidated operating income increased by $0.5 billion, or 8.2%, up 9.8% (cc), driven by higher gross margins and growth in membership income, as well as reduced losses in eCommerce
- Return on assets (ROA) at 7.8%; return on investment (ROI) at 15.1%, up 100 basis points
- Global eCommerce sales grew 27%, led by store-fulfilled pickup & delivery and marketplace
- Global advertising business grew 28%, including a 26% increase for Walmart Connect in the U.S.
- Adjusted EPS of $0.58, excluding a net loss of $0.01 on equity and other investments
- Global inventory down 1.0%, with Walmart U.S. inventory down 0.6%; in-stock levels remain healthy
“We had a strong quarter, continuing our momentum. Our associates are working hard to save people time and money and to transform our business. In the U.S., in-store volumes grew, pickup from stores grew faster, and delivery from stores grew even faster than that. Our teams are executing well and delighting our customers and members with the value and convenience they expect from Walmart,” said Doug McMillon, President and CEO of Walmart.
