Walmart Gains Sales Momentum In Q3

Walmart is gaining momentum heading into the holiday season, growing both store and digital sales. E-commerce channel sales increased 50% from the previous third quarter.

At Walmart U.S., third quarter comparable sales, excluding the effect of fuel price volatility, increased 2.7%, with traffic up 1.5% and average ticket up 1.2%. Sales in the e-commerce channel increased 50% from the period a year ago.

Sam’s Club comps, again without the effect of fuel price volatility, increased 2.8%, with traffic up 3.6% and average ticket down 0.8%. In both the Walmart U.S. and Sam’s Club divisions, e-commerce represented about 80 basis points of the comp.

Revenues increased 4.2% to $123.18 billion and net sales increased 4.2% to $122.14 billion versus the quarter a year before. Operating income was $4.76 billion versus $5.12 billion in the previous fiscal year.

For the third quarter ended October 31, Walmart posted company net income of $1.75 billion, or 58 cents per diluted share, versus $3.03 billion, or 98 cents per diluted share, in the year-earlier period.

Third quarter adjusted earnings per diluted share was $1, a figure that excludes a charge of 29 cents for loss on extinguishment of debt in connection with the company’s recent debt tender offer, a charge of nine cents based on discussions with government agencies regarding the possible resolution of a FCPA matter, and a charge of four cents based on the decision to exit certain properties in one of the company’s international markets. Adjusted net income topped a MarketBeat published analyst average estimate by three cents.

Doug McMillon, Wal-Mart president and CEO, said in a conference call that the company is expanding its initiatives as it evolves into a more diverse retail operation, acquiring delivery operation Parcel, for example, and bringing premium brands into the online operation, including KitchenAid, while it continues to expand grocery pickup and delivery services.

McMillon said, “We are pleased that we can see real progress stemming from our strategic choices and we appreciate the great work by our associates. Yet, we are not satisfied. We will continue to change and pick up speed to reach our longer term aspirations.”