① Walmart Third-quarter revenue grew 5.8% to $179.5 billion, and net profit rose 29% to $6.1 billion; Walmart expects full-year sales to grow 4.8% to 5.1% and has raised its full-year earnings per share (EPS) forecast to $2.58 to $2.63.
On Thursday local time, Walmart , the world's largest retailer, released its third-quarter earnings report, showing that the company is benefiting from increasingly value-conscious American consumers. In pre-market trading, the company's stock price rose slightly by 0.8%.
Walmart's financial report shows that its revenue grew 5.8% in the third quarter to $179.5 billion, exceeding the expected $177.43 billion; net profit increased 29% to $6.1 billion.
Walmart expects full-year sales to grow 4.8% to 5.1%, higher than its previous forecast of 3.75% to 4.75%. It also raised its full-year earnings per share (EPS) forecast to $2.58 to $2.63.
Walmart stated that while it noted a decline in spending by low-income consumers, particularly at the end of the quarter, the company is still expanding its market share overall, with the most significant growth coming from high-income groups.
In the three months ending October 31, Walmart's comparable sales in the U.S. market (sales from stores that have been operating for at least one year and through digital channels) grew by 4.5%. The company also raised its full-year sales and profit forecasts.
As the largest retailer in the United States by revenue, Walmart's solid performance demonstrates that, amid cautious economic prospects and years of rising prices, consumers remain willing to spend money as long as goods offer good value. Walmart stated that its store merchandise prices rose 1.3% year-over-year in the quarter, below the overall U.S. inflation rate of 3% in September.
John David Rainey, the company’s chief financial officer, said that sales had declined due to the federal government’s suspension of some funding for the Supplemental Nutrition Assistance Program, but this did not affect the company’s overall quarterly results.
Rainey stated that the consumption gap between high-income and low-income groups was "greater at the end of the quarter than at the beginning of the quarter and the beginning of the year." "I think consumers are still under pressure, with food prices up 25% compared to five years ago."
He also stated that the impact of tariffs was arguably smaller than many had anticipated, partly due to Walmart's efforts to control prices. The company absorbed some of the cost increases and passed some on to consumers. The price increases were primarily concentrated in imported categories such as electronics and patio furniture.
Meanwhile, Walmart expanded its online order delivery service, offering delivery within hours, to cover 95% of U.S. households. Combined with increased advertising revenue, e-commerce sales surged 27% year-over-year this quarter.
Walmart CEO Doug McMillon stated, "We are gaining market share, improving delivery speed, and effectively managing inventory. We are poised for a strong finish to the year and beyond."
Last week, Walmart announced that McMillon will step down as CEO at the end of this fiscal year, and will be succeeded by John Furner, a long-serving company executive and current head of Walmart's U.S. operations.
Walmart’s strong sales further confirm a long-standing trend in the retail industry: retailers that offer “good prices” on necessities and provide convenience are continuing to suppress their competitors.
Earlier this week, Target Home Depot reported a 2.7% decline in comparable sales for the latest quarter, partly due to consumers prioritizing value and purchasing non-disposable goods. Lowe's reported a decline in third-quarter profits due to weak demand for home renovations, and subsequently lowered its full-year earnings forecast. Sales were also sluggish in the latest quarter.
But discount retailer TJX reported strong sales on Wednesday, with comparable sales rising 5% in the latest quarter. Last month, Amazon... The company reported a 13% increase in quarterly net sales, reaching $180.2 billion.
(Article source: CLS)
