Walmart reported sales of general merchandise, including home products, propelled a strong third quarter and market share gains for the company, which topped Wall Street sales and earnings estimates for the quarter.
Walmart net earnings were $4.58 billion, or 57 cents per diluted share, versus $453 million, or six cents per diluted share, in the year-earlier period. Adjusted for one-time events, earnings per diluted share were 58 cents versus 51 cents in the year-prior period, the company reported.
A Zacks Investment Research analyst consensus estimate had earnings per adjusted diluted share coming in at 51 cents and revenues at $167.53 billion.
Net sales were $168 billion and net revenues, including membership and other income, were $169.59 billion versus $159.44 billion and $160.8 billion, respectively, in the year-previous period. Operating income was $6.71 billion versus $6.2 billion in the year-before period.
At Walmart U.S., the company stated net sales were $114.9 billion in the quarter, up from $109.4 billion in the year-past period. Comparable sales without the effects of fuel price volatility advanced 5.3% year over year as transactions gained 3.1% and average ticket gained 2.1%. E-commerce contribution to comps was about 290 basis points. Operating income was $5.4 billion, up 9.1% over the quarter a year past.
At Sam’s Club, net sales were $22.9 billion in the quarter versus $22 billion in the year-past period. Comps sans fuel advanced 7% year over year, with transactions up 6.4% and average ticket up 0.5%. E-commerce contribution to comp was about 290 basis points. Operating income was $600 million up 6.9% from the quarter a year past.
Walmart President and CEO Doug McMillon, said in a conference call, “We continue to gain market share in the U.S., both in grocery and general merchandise. Households earning more than $100,000 made up 75% of our share gains. In the U.S., in-store volumes grew, curbside pickup grew faster and delivery sales grew even faster than that. Becoming more convenient for our customers and members is helping drive our growth.”
In the conference call, John David Rainey, Walmart executive vp and CFO, maintained that food sales had been strong in the quarter, but he added the company has been “encouraged by the improvement in general merchandise,” where it enjoyed low-single-digit comp sales growth with particular strength in home, hardline and toys. In Walmart’s U.S. Marketplace, additional sellers and a broader array of items are driving growth, such that marketplace sales in beauty, toys, hardlines and home all grew more than 20% in the quarter, Rainey said.
Pictured above: Walmart’s private-label Mainstays stainless steel cookware.
