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Walmart Inc.
CEO : Mr. C. Douglas McMillon

Quarterly earnings growth(YoY,%)

Period	Revenue	Operating Income	EPS	Release Date
2025 Q3	5.5% YoY	8.2%	916.0%	2024-11-19

John David Rainey says,

Financial Performance and Sales Growth

• Q3 sales, operating income, and EPS exceeded the top end of guidance ranges.
• Enterprise net sales growth was over 6% on a constant currency basis.
• Walmart U.S. comp sales increased by 5.3%, with eCommerce sales growing 22%.
• International sales saw constant currency growth of 12.4%, driven by strong performance in Flipkart, Walmex, and China.

Operational Highlights and Strategy Execution

• Store fulfilled delivery surged nearly 50%, surpassing a $2.5 billion monthly run rate.
• Food categories reached the highest unit volume growth in four years.
• Mid-teens growth in health and wellness, with branded pharmacy scripts like GLP-1 contributing to the segment comp.
• Improved margins in the U.S. reflected inventory management and reduced markdown levels.
• International eCommerce sales increased by 43%, with a focus on delivery speed.

Margin and Profitability Improvements

• Consolidated gross margin expanded by 21 basis points.
• Third consecutive quarter of approximately 40% reduction in U.S. net delivery cost per order.
• Automation progress with more than 50% of fulfillment center volume now automated.
• Marketplace and fulfillment services in the U.S. saw more than 30% growth over the past five quarters.

Guidance and Future Projections

• Full year sales growth is now expected to be 4.8% to 5.1% on a constant currency basis.
• Operating income growth guidance has been raised to 8.5% to 9.25%.
• Adjusted EPS is projected to be between $2.42 and $2.47.
• Expected currency headwinds in Q4 could impact reported sales and operating income growth by approximately 100 and 200 basis points, respectively.

Notable Events and Strategic Initiatives

• Sam’s Club introduced new member perks, boosting eCommerce growth and customer satisfaction.
• Flipkart launched quick commerce service “Flipkart Minutes,” offering under 15-minute delivery.
• Walmart is scaling growth drivers such as advertising, membership, marketplace, and data analytics.
• Sam’s Club U.S. comp sales ex-fuel rose by 7% with eCommerce growth of 26%.
• Impact from hurricanes resulted in temporary closures but strong community support response.

Doug McMillon says,

Financial Performance Highlights

• Sales for the quarter grew by 6.1% in constant currency, while profits increased by 9.8%.
• eCommerce surged by 27%, advertising revenue grew by 28%, and membership income rose by 22%.
• Walmart International sales increased by 12.4% in constant currency.
• Sam’s Club U.S. reported a comp sales increase of 7%, while Walmart U.S. had a comp sales increase of 5.3%.
• The storm and port strike events slightly increased sales growth but negatively impacted operating income growth.

Market Trends and Consumer Behavior

• Walmart continues to gain market share in the U.S. in grocery and general merchandise.
• Majority (75%) of share gains in the U.S. came from households earning more than $100,000.
• General merchandise sales in the U.S. saw low-single-digit growth despite price deflation of over 4%.
• In-store volumes are growing, with curbside pickup and delivery sales growing even faster.
• Inventory is in a very good shape across the company.

Operational Developments

• Elimination of traditional checkouts at Sam’s Club with enhanced Scan & Go and computer vision exit technology.
• Expansion of digital sales in China with over 50 Sam’s Clubs and 350 distribution points offering 1-hour delivery service.
• Innovative initiatives in Mexico, including growth in eCommerce and financial services.
• Investment in AI and machine learning to improve customer experiences and operational efficiencies.
• Generative AI tools like My Assistant are enhancing associate productivity and engagement.

Community and Crisis Management Initiatives

• Walmart and the Walmart Foundation committed $16 million for disaster relief during U.S. port strikes and hurricanes.
• Support included 178 truckloads of supplies, $10 million in cash grants, and facilitation of 544,000 meals.
• Additional $14.5 million contributed by customers and members through campaigns.
• Efficient emergency response and recovery coordination with federal, state, and local leaders.

Future Outlook and Strategic Positioning

• Efforts to transform the business for future growth continued, with strong results so far.
• Continued focus on enhancing customer convenience through omnichannel strategies.
• Significant investment in technology and innovation to improve both customer and employee experiences.
• International expansion and digitalization efforts are positioning the company for sustained growth.
• Walmart is well-positioned to adapt and thrive in an evolving retail landscape.

Q & A sessions,

Financial Performance and Guidance

• There is a modest improvement expected in 4Q performance compared to the previous guidance.
• Gross margin (GM) has improved slightly due to better-than-expected shrink performance in the U.S. and Sam’s segment.
• Enterprise growth in key areas: 28% in advertising, 42% in marketplace, and 23% in membership income.
• The company aims to grow sales by about 4% annually on average over the next several years, with operating income growing faster than sales.
• Year-to-date performance indicates approximately 5% top-line growth and about 10% profit growth.

eCommerce and Digital Business Growth

• eCommerce growth over the last eight quarters is emphasized, with continued investment expected for future growth.
• eCommerce had a significant quarter with 22% growth, led by marketplace expansion.
• The business mix includes first-party (1P) and third-party (3P) offerings, with investments aimed at long-term profitability despite potential short-term impacts.
• Emphasis on digital transitions and omni-channel strategies to enhance customer convenience and satisfaction.

Category Performance and Market Share

• Walmart is experiencing increased market share, particularly in grocery and consumables, compared to general merchandise.
• Higher income customers are contributing to market share gains, especially in specialty grocery items.
• Potential for further market share growth in fashion categories, driven by eCommerce opportunities.
• Efforts to expand product assortment and improve the customer experience are ongoing.

Operational Investments and SG&A

• Increased investment in marketing has been noted, driving general merchandise performance.
• Incentive pay for frontline associates is aligned with company performance, impacting SG&A.
• The shift towards digital channels exerts pressure on SG&A, but the company aims for efficiency improvements.
• Long-term goals include reaching the 20% range in SG&A while maintaining everyday low prices.

Strategic Outlook and Future Investments

• The company is committed to balancing profit expansion with necessary business investments, focusing on long-term health.
• Investments in areas like automation and technology are designed to enhance customer service and business efficiency.
• Walmart+ and other membership services are seen as integral to customer retention and long-term success.
• Continued focus on omni-channel capabilities to offer competitive pricing and convenience.