Walmart reported that strong sales in the US were "led by grocery and health and wellness", while sales of general merchandise declined modestly in Q3 2024.
Walmart’s vice president and chief financial officer John David Rainey said that it had seen a “softening” in performance in the second half of October 2023, with “uneven” sales in Q3 overall.
“This gives us reason to think slightly more cautiously about the consumer versus 90 days ago,” he said on a call with investors as the results were shared.
Walmart has slightly increased its full-year sales guidance to between 5% and 5.5% for FY24.
Walmart’s CEO and president Doug McMillon said in a statement: “We had strong revenue across segments for the quarter, and we’re excited to get an early start to the holiday season.”
Rainey added: “We’re offering tremendous value for things like fashion, electronics and seasonal decorations.”
The news comes shortly after data and analytics company GlobalData warned the top 25 publicly traded retailers, with a combined market valuation of $3.77trn, had experienced a significant market value drop of approximately $80bn in the third quarter of 2023 on the back of macro-economic pressures.
Key statistics for Q3 2024 at Walmart
- 5.2% growth in total revenues to $160.8bn
- Operating income increased 130.1% from $2.7bn to $6.2bn
- Income before income taxes was $915m
- 24% growth in e-commerce sales at Walmart
- Net sales guidance raised to 5-5.5% for FY24
Walmart said its strong growth in e-commerce sales at Walmart US, which increased 24%, was driven by the strength of its pickup and delivery offer.
On a call with investors, John Furner, president and CEO at Walmart US, said that the retailer had completed a large number of store remodels in Q3. “Those remodels have improved apparel, improved home […] They also have more investment for our online pickup and delivery business, which is a key catalyst for e-commerce growth.”
Walmart US also attributed a 4.9% increase in comparable sales to its omnichannel model.
At the wider Walmart business, e-commerce sales were down by 3%, which the group attributed to the rescheduled Big Billion Day sales at its India-based Flipkart store.
The event will now be included in Q4’s results, after previously being included in Q3.
McMillon added: “Looking ahead, our inventory is in good shape, the teams are focused, and our associates are ready to serve our customers and members whenever and however they want to be served.”
The parent company of fellow value fashion retailer Primark, Associated British Foods reported increased profits and sales in 2023 thanks to selective price increases amid rising inflation.
