Walmart Posts Strong Q3 As It Launches New Initiatives

As the COVID-19 pandemic enters a new phase, Walmart third quarter sales and earnings maintain momentum as consumers turn to it, in store and online, to meet their ongoing needs.

The company posted net income of $5.14 billion, or $1.80 per diluted share, versus $3.29 billion, or $1.15 per diluted share, in the year-previous period.

Adjusted for one-time events, diluted earnings per share were $1.34 versus $1.16 in the year-before quarter, the company reported. Walmart topped a MarketBeat-published analyst consensus adjusted diluted earnings per share estimate of $1.18.

In the quarter, Walmart comparable store sales excluding fuel gained 7.1% versus the period a year past. At Walmart U.S., comparable sales excluding fuel were up 6.4% year over year with transactions down 14.2% but average ticket up 24%. The contribution from e-commerce was about 570 basis points. At Sam’s Club, comparable sales excluding fuel were up 11.1%, with transactions up 6.8% and average ticket up 4%. The contribution from e-commerce was about 230 basis points.

Net sales were $133.75 billion while net revenues were $134.71 billion, versus $126.98 billion and $127.99 billion, respectively, in the year-prior quarter. Operating income was $5.78 billion versus $4.72 billion in the year-earlier period while adjusted operating income was $5.84 million versus $5.01 billion.

Among the highlights of the quarter, Walmart launched its Walmart + membership program, initiated the rollout of a new U.S. store design intended to better align physical and virtual operations, and announced sales involving subsidiary operations in the United Kingdom, Argentina and Japan while expanding investment and operations in India.

Walmart president and CEO Doug McMillon said, “This was another strong quarter on the top and bottom line. Our associates continue to impress during this challenging year. They are working together to serve customers and communities in new, relevant ways, and we’re very proud of them. We think these new customer behaviors will largely persist, and we’re well positioned to serve customers with the value and experience they’re looking for. ”