Walmart Posts Strong Global Revenue Growth

Walmart has published third quarter trading for the 2023 financial year.

Q3 FY23 Earnings at a Glance

• Total revenue was $152.8 billion, up 8.7%, or 9.8% in constant currency(2).
  
  
• Company delivered strong revenue growth globally, with strength in Walmart U.S., Sam’s Club U.S., Flipkart, and Walmex. Total revenue was $152.8 billion, up 8.7%, or 9.8% in constant currency(2).
  
  
• Walmart U.S. Q3 comp sales(1) grew 8.2% and 17.4% on a two-year stack. Continued to gain market share in grocery.

• Walmart U.S. eCommerce growth was 16% and 24% on a two-year stack.

• Sam’s Club comp sales(1) increased 10.0%, and 23.9% on a two-year stack. Membership income increased 8.0% with member count at an all-time high.
   
• Walmart International net sales were $25.3 billion, an increase of $1.7 billion, or 7.1%, negatively affected by $1.5 billion from currency fluctuations.
  
  
• Global advertising business(3) grew over 30%, led by 40% at Walmart Connect in the U.S. and strength in Flipkart Ads.
  
  
• Consolidated adjusted operating income2 was $6.0 billion, an increase of 3.9%.
  
  
• Earnings Per Share: GAAP EPS of $0.66; Adjusted EPS2 of $1.50.
  
  
• Subsequent to the third quarter the Company approved a new $20 billion share repurchase authorization replacing its existing authorization, which had approximately $1.9 billion remaining at the end of Q3

Fourth quarter and Fiscal Year 2023 guidance

The following guidance reflects the company’s expectations for Q4 and fiscal year 2023 and is provided on a non-GAAP basis as the company cannot predict certain elements which are included in reported GAAP results, such as the changes in fair value of the company’s equity and other investments. Growth rates reflect an adjusted basis for prior year results.

Fiscal year 2023 operating income is adjusted for charges related to opioid legal settlements in the third quarter. The company’s guidance assumes a generally stable consumer in the U.S., continued pressure from inflation and mix of products and formats globally.

Fourth quarter

• Consolidated net sales growth of about 3.0%, negatively affected by approximately $1.3 billion from currency fluctuations.

• Walmart U.S. comp sales, excluding fuel, of about 3.0%.

• Consolidated operating income increase 1.0% to decline 1.0%

• Adjusted earnings per share decline of 3.0% to 5.0%.

Fiscal Year 2023

The company raises full-year outlook to reflect third quarter performance:

• Consolidated net sales growth of about 5.5%. Excluding divestitures3, consolidated net sales growth of about 6.5%. Based on current exchange rates, the company expects a headwind of about $4.1 billion for the year.

• Walmart U.S. comp sales growth, excluding fuel, of about 5.5%.

• Consolidated adjusted operating income decline of 6.5% to 7.5%, which improved from the company’s prior guidance of a decline of 9.0% to 11.0% and reflects better performance in the third quarter. Excluding divestitures3, consolidated adjusted operating income decline of 5.5% to 6.5%.

• Adjusted earnings per share decline of 6.0% to 7.0%. Excluding divestitures(3), adjusted earnings per share decline of 5.0% to 6.0%.

Doug McMillon President and CEO, Walmart, said: “We had a good quarter with strong top-line growth globally led by Walmart and Sam’s Club U.S., along with Flipkart and Walmex. Walmart U.S. continued to gain market share in grocery, helped by unit growth in our food business. We significantly improved our inventory position in Q3, and we’ll continue to make progress as we end the year. From The Big Billion Days in India, through our Deals for Days events in the U.S. and a Thanksgiving meal that will cost the same as last year, we’re here to help make this an affordable and special time for families around the world. We have an amazing group of associates that make all this happen, and I want to say thank you.” 

Source : Walmart

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