Company delivers strong revenue growth of 8.7% with strength across segments; Q3 FY23 GAAP EPS of ($0.66); Adjusted EPS of $1.50; Company raises full-year outlook on strong results for Q3

Rhea-AI Summary

Walmart Inc. reported strong third-quarter results with total revenue of $152.8 billion, an increase of 8.7%, and 9.8% in constant currency. Comp sales at Walmart U.S. grew by 8.2%, with eCommerce up 16%. Sam's Club comp sales rose 10% and membership income increased 8%. International sales reached $25.3 billion. Walmart’s global advertising growth exceeded 30%. However, gross profit rate declined by 89 basis points, and operating income fell by 53.5% due to opioid-related legal charges. Walmart announced a new $20 billion share repurchase authorization.

Positive

• Total revenue of $152.8 billion, up 8.7%.
• Walmart U.S. comp sales increased 8.2%.
• eCommerce sales grew by 16%.
• Sam's Club comp sales rose 10%.
• Membership income increased by 8%.
• International sales reached $25.3 billion.
• Global advertising revenue grew over 30%.
• Adjusted operating income increased by 3.9%.
• New $20 billion share repurchase authorization announced.

Negative

• Gross profit rate declined by 89 basis points.
• Operating income decreased by 53.5% due to legal charges.

BENTONVILLE, Ark.--(BUSINESS WIRE)-- Walmart Inc. (NYSE: WMT):

Third-quarter highlights:

• Company delivered strong revenue growth globally, with strength in Walmart U.S., Sam’s Club U.S., Flipkart, and Walmex. Total revenue was $152.8 billion, up 8.7%, or 9.8% in constant currency.
• Walmart U.S. comp sales grew 8.2% and 17.4% on a two-year stack. eCommerce growth was 16% and 24% on a two-year stack. Continued to gain market share in grocery.
• Sam’s Club comp sales increased 10.0%, and 23.9% on a two-year stack. Membership income increased 8.0% with member count reaching an all-time high.
• Walmart International net sales were $25.3 billion, an increase of $1.7 billion, or 7.1%, negatively affected by $1.5 billion from currency fluctuations. Segment operating income led by double-digit growth for Walmex.
• Global advertising business grew over 30%, led by 40% at Walmart Connect in the U.S. and strength in Flipkart Ads.
• Consolidated gross profit rate declined 89 basis points, primarily due to markdowns and mix of sales in the U.S., an inflation-related LIFO charge at Sam’s Club, and the timing of Flipkart’s annual event, The Big Billion Days.
• Consolidated operating expenses as a percentage of net sales increased 144 basis points due to charges of $3.3 billion related to opioid legal settlements. Adjusted operating expenses as a percentage of net sales decreased 75 basis points, primarily due to strong sales growth and lower Covid-related costs.
• Consolidated operating income was $2.7 billion, a decrease of 53.5%, including the legal charges described above. Adjusted operating income was $6.0 billion, an increase of 3.9%.
• Adjusted EPS of $1.50 excludes the effects, net of tax, of $1.11 from net losses on equity and other investments and $1.05 from charges related to opioid legal settlements.
• Subsequent to the third quarter the Company approved a new $20 billion share repurchase authorization replacing its existing authorization, which had approximately $1.9 billion remaining at the end of Q3.

The company will hold a live conference call with the Investment Community at 7 a.m. CST Tuesday, Nov. 15, 2022, to discuss the company’s third quarter earnings results for fiscal year 2023. The event will be webcast live and is accessible by visiting https://corporate.walmart.com/newsroom/financial-events and selecting the Third Quarter Earnings Release event. The webcast will be archived and available beginning at approximately noon CST Nov. 15.

About Walmart

Walmart Inc. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores, online, and through their mobile devices. Each week, approximately 230 million customers and members visit more than 10,500 stores and numerous eCommerce websites under 46 banners in 24 countries. With fiscal year 2022 revenue of $573 billion, Walmart employs approximately 2.3 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting https://corporate.walmart.com, on Facebook at https://facebook.com/walmart, on Twitter at https://twitter.com/walmart, and on LinkedIn at https://www.linkedin.com/company/walmart/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221114006112/en/

Investor Relations Contacts

Steph Wissink

Senior Vice President, Investor Relations

Stephanie.Wissink@walmart.com

Kary Brunner

Sr. Director II, Investor Relations

Kary.Brunner@walmart.com



Media Relations Contact

Jacquelyn Cook

Sr. Manager, Global Communications

800-331-0085

Source: Walmart Inc.

FAQ

What were Walmart's third-quarter revenue figures for 2022?

Walmart reported total revenue of $152.8 billion for the third quarter of 2022.

How much did Walmart's comp sales grow in the U.S. for Q3 2022?

Walmart's comp sales in the U.S. grew by 8.2% in Q3 2022.

What was the adjusted EPS for Walmart in Q3 2022?

Walmart's adjusted EPS for the third quarter of 2022 was $1.50.

What is the new share repurchase authorization amount for Walmart?

Walmart announced a new share repurchase authorization of $20 billion.

How did Walmart's international sales perform in Q3 2022?

Walmart's international sales reached $25.3 billion, an increase of $1.7 billion.