Walmart U.S. Q3 comp sales grew 9.2%; 15.6% two-year stack

Comp transactions up 5.7% Q3

FY22 GAAP EPS of $1.11; Adjusted EPS2,3 of $1.45 Company expects

Walmart U.S. Q4 comp sales of around 5%

Raises EPS guidance for third consecutive quarter Walmart U.S. inventory up 11.5% ahead of holidays

Walmart raised full-year guidance

Walmart U.S. comp sales above 6%, excluding fuel • FY22 GAAP EPS of around $5.00; Adjusted EPS4 of around $6.40 versus prior guidance of $6.20-$6.35 • FY22 capital expenditures of around $13 billion

“Our momentum continues with strong sales and profit growth globally. Our omnichannel focus is pushing digital penetration to record levels. We gained market share in grocery in the U.S., and more customers and members are returning to our stores and clubs around the world. Looking ahead, we have the people, the products, and the prices to deliver a great holiday season for our customers and members.” Doug McMillon President and CEO, Walmart.

Total revenue was $140.5 billion, up 4.3%, negatively affected by approximately $9.4 billion related to divestitures. Excluding currency , total revenue would have increased 3.3% to $139.2 billion. Walmart U.S. eCommerce sales grew 8% for the quarter and 87% on a two-year stack.

Sam’s Club comp sales increased 13.9%, and 25% on a two-year stack. E-commerce sales grew 32%. Membership income increased 11.3%, which is the fifth consecutive quarter of double-digit growth.

Walmart International net sales were $23.6 billion, a decrease of $5.9 billion, or 20.1%, negatively affected by $9.4 billion related to divestitures. Changes in currency exchange rates positively affected net sales by approximately $1.3 billion.

Flipkart, China, and Mexico delivered strong growth in eCommerce. Consolidated gross profit rate decreased 42 basis points, primarily due to increased supply chain costs, a higher mix of lower margin fuel business in the U.S. and a shifting international format mix.

Consolidated operating expenses as a percentage of net sales declined 4 basis points reflecting strong sales growth and lower expenses for COVID-19, offset by investments in wages. Consolidated operating income was $5.8 billion, an increase of 0.2%, negatively affected by $0.4 billion related to divestitures, or about 750 basis points.