Christmas is coming early to Walmart shareholders, who saw the retailer’s stock price hit an all-time high today, rising 8% to the $98 range and pushing the Dow 200 points after third quarter earnings reinforced its status as the world’s leading grocer.
• Total revenue was $123.2 billion, an increase of $5.0 billion, or 4.2%. Excluding currency, total revenue was $122.7 billion, an increase of $4.5 billion, or 3.8%.
• Walmart U.S. comp sales (comparable same-store sales) increased 2.7%, and comp traffic increased 1.5%. The average ticket at Walmart’s U.S. stores was up 1.2%, helped by the rapid growth of its food business, making its the strongest quarter for U.S. sales in eight years.
• eCommerce growth at Walmart U.S. remained strong, led by growth through Walmart.com. Net sales and GMV increased 50% and 54%, respectively.
• Net sales at Walmart International were $29.5 billion, an increase of 4.1%. Excluding currency, net sales were $29.1 billion, an increase of 2.5%. Ten of eleven markets posted positive comp sales, including our four largest markets.
As CNBC commented, the results prove that Walmart “is a match for Amazon (by) expanding an online grocery pickup service, and keeping prices competitive, but not necessarily at rock bottom.
Wall Street is rallying behind the company’s upbeat third-quarter results and heavy momentum heading into the holiday season. In a digital world, Amazon and Wal-Mart are competing to bring big-name brands to their respective platforms.”
Walmart said its grocery categories delivered the strongest quarterly comparable sales performance in nearly six years, with fresh meat, bakery and produce leading the way. Its e-commerce sales soared 50 percent in the fiscal third quarter, a year after it acquired Jet.com.
“We are pleased with the strong results in the quarter across each of our business segments, and I want to thank our associates for their commitment and great work to make it happen,” said Doug McMillon, President and CEO, Walmart U.S. “We have momentum, and it’s encouraging to see customers responding to our store and eCommerce initiatives. We are leveraging our unique assets to save customerstime and money and serve them in ways that are easy, fast, friendly and fun.”