Walmart: Strong Q3 Like-For-Like Sales

Walmart has published its Q3 trading update, covering the 13-week period ended October 29, 2021:

• Walmart U.S. Q3 comp sales(1) grew 9.2%; 15.6% two-year stack
• Comp transactions up 5.7%
• Q3 FY22 GAAP EPS of $1.11; Adjusted EPS(2,3) of $1.45 
• Company expects Walmart U.S. Q4 comp sales of around 5%
• Raises EPS guidance for third consecutive quarter
• Walmart U.S. inventory up 11.5% ahead of holidays

Total Revenue
Total revenue was $140.5 billion, up 4.3%, negatively affected by approximately $9.4 billion related to divestitures. Excluding currency(2), total revenue would have increased 3.3% to $139.2 billion.

U.S. Comp Sales
Walmart U.S. Q3 comp sales(1) grew 9.2%. 15.6% two-year stack. Comp transactions up 5.7%.

Walmart U.S. eCommerce
Walmart U.S. eCommerce sales grew 8% for the quarter and 87% on a two-year stack.

Sam's Club Comp Sales
Sam’s Club comp sales(1) increased 13.9%, and 25% on a two-year stack. eCommerce sales grew 32%. Membership income increased 11.3%, which is the fifth consecutive quarter of double-digit growth.

Walmart International
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.

Operating Income
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.

Adjusted EPS
Adjusted EPS2 of $1.45 excludes the effects, net of tax, of a loss on extinguishment of debt of $0.67 and net gains on equity investments of $0.33.

“Our momentum continues with strong sales and profit growth globally.  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.” Doug McMillon President and CEO, Walmart.

Source : Walmart

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