Walmart Inc.: reports third quarter FY-2022 results

Bentonville / AR. (wama) Walmart Inc. published its financial statements for the third quarter of fiscal 2022, that ended in Bentonville on October 29, 2021. Total revenue was USD 140.5 billion, up 4.3 percent, negatively affected by approximately USD 9.4 billion related to divestitures. Excluding currency, total revenue would have increased 3.3 percent to USD 139.2 billion.

Walmart U.S. Q3 comparable sales grew 9.2 percent. 15.6 percent two-year stack. Comparable transactions up 5.7 percent. Walmart U.S. E-Commerce sales grew 8 percent for the quarter and 87 percent on a two-year stack.

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

Walmart International net sales were USD 23.6 billion, a decrease of USD 5.9 billion, or 20.1 percent, negatively affected by USD 9.4 billion related to divestitures. Changes in currency exchange rates positively affected net sales by approximately USD 1.3 billion. Flipkart, China and Mexico delivered strong growth in E-Commerce.

Consolidated operating income was USD 5.8 billion, an increase of 0.2 percent, negatively affected by USD 0.4 billion related to divestitures, or about 750 basis points. Adjusted EPS of USD 1.45 excludes the effects, net of tax, of a loss on extinguishment of debt of USD 0.67 and net gains on equity investments of USD 0.33.

Third quarter highlights

  • Walmart raises full-year guidance
    • Walmart U.S. comp sales above 6 percent, excluding fuel
    • FY22 GAAP EPS of around USD 5.00; Adjusted EPS of around USD 6.40 versus prior guidance of USD 6.20-USD 6.35
    • FY22 capital expenditures of around USD 13 billion
  • Total revenue was USD 140.5 billion, up 4.3 percent, negatively affected by approximately USD 9.4 billion related to divestitures. Excluding currency, total revenue would have increased 3.3 percent to USD 139.2 billion
  • Walmart U.S. E-Commerce sales grew 8 percent for the quarter and 87 percent on a two-year stack.
  • Sam’s Club comp sales increased 13.9 percent, and 25 percent on a two-year stack. E-commerce sales grew 32 percent. Membership income increased 11.3 percent, which is the fifth consecutive quarter of double-digit growth.
  • Walmart International net sales were USD 23.6 billion, a decrease of USD 5.9 billion, or 20.1 percent, negatively affected by USD 9.4 billion related to divestitures. Changes in currency exchange rates positively affected net sales by approximately USD 1.3 billion. Flipkart, China, and Mexico delivered strong growth in E-Commerce.
  • 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 USD 5.8 billion, an increase of 0.2 percent, negatively affected by USD 0.4 billion related to divestitures, or about 750 basis points.
  • Repurchased USD 7.4 billion in shares year to date, representing around 35 percent of the USD 20 billion authorization announced earlier this year.

For additional information please read the Company’s PDF file below (379 KB):

20211117-WALMART-Q3-2022
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