World's largest Discount Retail Chain Walmart (listed NYSE: WMT) net sales and operating results continue to be affected by the global health crisis. Increased demand for products across multiple categories led to strong top-line and gross margin results.
“This was another strong quarter on the top and bottom line. Our associates continue to impress during this challenging year. They are working together to serve customers and communities in new, relevant ways and we’re very proud of them. We think these new customer behaviors will largely persist and we’re well positioned to serve customers with the value and experience they’re looking for.” Doug McMillon President and CEO.
- Walmart Total revenue was $134.7 billion, an increase of US$6.7 billion, or 5.2%. Excluding currency, total revenue would have increased 6.1% to reach US$135.8 billion;
- Walmart U.S. comp sales increased 6.4% with strength across key categories, including general merchandise, health & wellness and food;
- Walmart U.S. eCommerce sales grew 79% with strong results across all channels and contributed approximately 570 basis points to LFL sales;
- Sam’s Club comp sales increased 11.1%. eCommerce sales grew 41%. Reduced tobacco sales negatively affected comp sales by approximately 420 basis points. New member sign-ups and renewal rates were strong, particularly Plus membership. Membership income increased 10.4%;
- Walmart International net sales were US$29.6 billion, an increase of 1.3%. Changes in currency rates negatively affected net sales by approximately US$1.1 billion. Excluding currency, net sales would have been US$30.6 billion, an increase of 5.0% led by Flipkart, Canada and Walmex. Strong growth in net sales at Flipkart was helped by a record number of monthly active customers.
Consolidated gross profit rate increased 50 basis points with positive contributions from each operating segment. Consolidated operating expenses as a percentage of net sales decreased 18 basis points. Incremental expenses related to COVID-19 were approximately US$0.6 billion, partially offset by a non-cash impairment charge in the third quarter of last year. Underlying productivity in stores and eCommerce remained strong. Consolidated operating income was US$5.8 billion, an increase of 22.5%. Adjusted operating income in constant currency increased 16.4% with strong contributions from each operating segment. Adjusted EPS excludes the effects, net of tax, of an unrealized gain of US$0.80 on equity investments and US$0.34 for the loss on sale of Walmart Argentina.
Operating cash flow year to date has been strong and increased approximately US$8.3 billion versus last year to almost US$23 billion.