📈 Strong Revenue Growth
Walmart reported a robust Q3 with $169.6B in revenue, a 5.5% year-over-year increase. Operating income rose 8.2% to $6.7B, up from $6.2B. In the U.S., net sales increased 5% to $114.9B, driven by a 5.3% rise in comparable sales, excluding fuel. The company raised its annual guidance, now expecting 4.8%-5.1% sales growth for 2024. Hurricanes and a port strike disrupted operations, but most stores recovered swiftly, according to CFO John David Rainey.
🚀 E-commerce Leads the Way
Global e-commerce sales surged 27%, with U.S. growth at 22%. Walmart's marketplace expanded by 42%, maintaining over 30% growth for five consecutive quarters. The platform now offers nearly 700M items, thanks to double-digit seller growth. Over 30% of deliveries were expedited, with many customers paying fees for one-hour delivery options. CEO Doug McMillon emphasized how years of digital investment are paying off, allowing Walmart to excel in value and convenience.
🏬 Store Improvements Shine
Walmart's physical stores saw significant enhancements, contributing to its success. Analysts noted that better in-store experiences combined with digital integration are separating Walmart from traditional competitors. Seasonal events, like back-to-school and Halloween, boosted general merchandise sales by low single digits. These efforts highlight Walmart’s shift toward a profitable, versatile ecosystem.
💡 Analysts Praise Strategy
Analysts lauded Walmart for adapting to economic challenges and consumer trends. Bill Kirk from Roth MKM highlighted the retailer’s pivot from value-focused competition to a convenience-driven model. Neil Saunders from GlobalData emphasized that inflationary periods favored Walmart, but the company’s proactive strategies, such as store fulfillment and its ad business, were key to its resilience. Experts believe Walmart is well-positioned for Q4 and beyond.
How can other retailers compete with Walmart?
