Walmart U.S. Q3 comp sales grew 9.2%; 15.6% two-year stack; Comp transactions up 5.7%

Rhea-AI Summary

Walmart Inc. (NYSE: WMT) reported Q3 FY22 GAAP EPS of $1.11 and Adjusted EPS of $1.45. The company raised its EPS guidance for the third consecutive quarter and anticipates Q4 comp sales around 5%. Notably, total revenue reached $140.5 billion, up 4.3%, despite a $9.4 billion negative impact from divestitures. E-commerce sales increased by 8%, while Sam’s Club comp sales rose by 13.9%. However, the consolidated gross profit rate decreased.

Positive

• Raises full-year EPS guidance to around $5.00 GAAP and $6.40 Adjusted EPS.
• Total revenue increased 4.3% year-over-year to $140.5 billion.
• E-commerce sales grew by 8% for the quarter.
• Sam's Club comp sales increased 13.9%, with e-commerce sales up 32%.

Negative

• Consolidated gross profit rate decreased by 42 basis points.
• Consolidated operating income was negatively impacted by $0.4 billion due to divestitures.

Q3 FY22 GAAP EPS of $1.11; Adjusted EPS of $1.45

Company expects Walmart U.S. Q4 comp sales of around 5%; Raises EPS guidance for third consecutive quarter

Walmart U.S. inventory up 11.5% ahead of holidays

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

Third quarter highlights:

• Walmart raises full-year guidance
  • Walmart U.S. comp sales above 6%, excluding fuel
  • FY22 GAAP EPS of around $5.00; Adjusted EPS of around $6.40 versus prior guidance of $6.20-$6.35
  • FY22 capital expenditures of around $13 billion
• Total revenue was $140.5 billion, up 4.3%, negatively affected by approximately $9.4 billion related to divestitures. Excluding currency, total revenue would have increased 3.3% to $139.2 billion
• Walmart U.S. eCommerce sales grew 8% for the quarter and 87% on a two-year stack.
• Sam’s Club comp sales increased 13.9%, and 25% on a two-year stack. E-commerce sales grew 32%. Membership income increased 11.3%, which is the fifth consecutive quarter of double-digit growth.
• Walmart International net sales were $23.6 billion, a decrease of $5.9 billion, or 20.1%, negatively affected by $9.4 billion related to divestitures. Changes in currency exchange rates positively affected net sales by approximately $1.3 billion. Flipkart, China, and Mexico delivered strong growth in eCommerce.
• Consolidated gross profit rate decreased 42 basis points, primarily due to increased supply chain costs, a higher mix of lower margin fuel business in the U.S. and a shifting international format mix.
• Consolidated operating expenses as a percentage of net sales declined 4 basis points reflecting strong sales growth and lower expenses for COVID-19, offset by investments in wages.
• Consolidated operating income was $5.8 billion, an increase of 0.2%, negatively affected by $0.4 billion related to divestitures, or about 750 basis points.
• Repurchased $7.4 billion in shares year to date, representing around 35% of the $20 billion authorization announced earlier this year.

The company will hold a live conference call with the Investment Community at 7 a.m. CST on Tuesday, November 16, 2021, to discuss the company’s third quarter earnings results for fiscal year 2022. The event will be webcast live and accessible by logging onto https://corporate.walmart.com/newsroom/financial-events and selecting the Third Quarter Earnings Release event.

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 220 million customers and members visit approximately 10,500 stores and clubs under 48 banners in 24 countries and eCommerce websites. With fiscal year 2021 revenue of $559 billion, Walmart employs 2.2 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 and on Twitter at https://twitter.com/walmart.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211116005768/en/

Investor Relations Contacts

Dan Binder, CFA

Sr. Vice President, Investor Relations and Interim Corporate FP&A

479-277-0485

Kary Brunner

Sr. Director II, Investor Relations

479-381-9268

Media Relations Contact

Randy Hargrove

Sr. Director, Global Communications

800-331-0085

Source: Walmart Inc.

FAQ

What were Walmart's Q3 FY22 earnings per share?

Walmart reported Q3 FY22 GAAP EPS of $1.11 and Adjusted EPS of $1.45.

How did Walmart's revenue perform in Q3 FY22?

Walmart's total revenue was $140.5 billion, representing a 4.3% increase year-over-year.

What are Walmart's expectations for Q4 comp sales?

Walmart expects Q4 comp sales to be around 5%.

How much did Walmart raise its EPS guidance for FY22?

Walmart raised its full-year EPS guidance to around $5.00 GAAP and $6.40 Adjusted EPS.

What impact did divestitures have on Walmart's revenue?

Divestitures negatively affected total revenue by approximately $9.4 billion.