Walmart’s U.S. same store sales moved into positive territory for the first time in seven quarters, increasing 0.5 percent in the 13-week third quarter ended Oct. 31. Comp sales for its Neighborhood Market format increased approximately 5.5 percent during the quarter.
Walmart U.S. net sales increased $2.3 billion in the third quarter, or 3.4 percent, to approximately $70.0 billion.
Consolidated net sales for the third quarter were $118.1 billion, an increase of 2.8 percent over last year. Membership and other income increased 13.9 percent vs. last year.
Total revenue was $119.0 billion, an increase of approximately $3.3 billion, or 2.9 percent.
Consolidated net income attributable to Walmart was $3.7 billion, a decrease of 0.7 percent. Diluted earnings per share from continuing operations attributable to Walmart were $1.15, or 0.9 percent above last year’s $1.14.
“Walmart reported solid earnings per share of $1.15 in the third quarter,” said Doug McMillon, president and CEO. “The highlights for the quarter include the positive comp in Walmart U.S., including the strong performance from Neighborhood Markets, the 21 percent increase in e-commerce sales globally and the profit performances from Sam’s Club and our international business.”
McMillon stressed the need to strengthen Walmart’s sales growth and improve the customer experience, both in stores and online.
“We’re investing in key areas of our business, including wages in our U.S. stores and in e-commerce and mobile capabilities. We continue to see opportunities to improve our business,” he added. “Being the price leader is an ongoing priority for us and a commitment to customers. As with every year, that is even more important during the holiday season. We have some things in our favor this fourth quarter, including lower fuel prices in the U.S. and other key markets, and we’re set to deliver for customers during this time.”
Bentonville, Arkansas-based Walmart also set its guidance for earnings, forecasting EPS for the fourth quarter between $1.46 and $1.56. Guidance for the fiscal year was $4.92 to $5.02 EPS, down from the company’s previous full-year guidance of $4.90 to $5.15.
