Walmart reports strong Q3, ups FY25 outlook

Consolidated third quarter revenue at Walmart of 169.6 billion dollars, increased by 5.5 percent or 6.2 percent on constant currency basis.

Raising its outlook for FY25, the company said net sales to reach 642.6 billion dollars, adjusted operating income at 27.1 billion dollars and adjusted EPS of 2.22 dollars.

We had a strong quarter, continuing our momentum. In the U.S., in-store volumes grew, pickup from stores grew faster, and delivery from stores grew even faster than that,” said Doug McMillon, president and CEO, Walmart in a statement.

The company said that gross margin rate for the quarter was up 21 bps, led by Walmart U.S., operating income increased by 0.5 billion dollars, up 8.2 percent or 9.8 percent cc.

The company recorded adjusted EPS of 58 cents versus a net loss of 0.01 cents on equity and other investments.

Walmart’s global ecommerce sales grew 27 percent, led by store fulfilled pickup & delivery and marketplace, advertising business grew 28 percent, including 26 percent for Walmart Connect in the U.S.

Walmart U.S. ecommerce sales were up 22 percent, led by store-fulfilled pickup & delivery, advertising and marketplace. Gross profit rate increased 42 bps and operating income by 9.1 percent with expansion of gross margin.

Walmart International growth in net sales was led by Flipkart, Walmex, and China, reflecting growth in general merchandise and food & consumables. Ecommerce sales were up 43 percent, led by marketplace and store-fulfilled pickup & delivery; penetration up across markets, while advertising business grew 50 percent, led by Flipkart.