Walmart CFO John David Rainey says it was a ‘great quarter’ for the company on ‘The Claman Countdown.’
Walmart, on Tuesday, raised its outlook for the year after benefiting from increased spending on non-essential items and an increase in pickup and delivery orders.
The company – the largest US retailer and a key indicator of US consumer sentiment – forecast net sales to grow between 4.8% and 5.1%, up from its previous forecast of sales growth of 3.75% to 4.75%.
It also continues to get big raises for top earners.
“We had a strong quarter, continuing our momentum,” Walmart CEO Doug McMillon said in the company’s earnings release. “In the US, retail prices grew, in-store pickup grew faster, and in-store delivery grew faster than that.”
WALMART LAUNCHES NATIONWIDE SAME DAY DELIVERY
The company reported third-quarter revenue rose more than 5% from the previous quarter to $169.6 billion, beating the Wall Street estimate of $167.72 billion. Adjusted earnings per share also beat Wall Street estimates by 5 cents.
A North Miami Beach, Florida, Walmart customer using the self-checkout register. (Jeffrey Greenberg/Universal Images Group via Getty Images/Getty Images)
In the three-month period that ended on Oct. 31, sales at US stores jumped 5.3% due to “strengths in retail categories and physical and digital channels,” Walmart reported.
The increase in discretionary spending represents a reversal of the trend seen in recent years, when inflation squeezed household budgets and forced many consumers to focus on essentials.
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Walmart is introducing pharmacy delivery in several states. (Walmart)
In the past three months, US sales grew 3.1%, and the average ticket rose 2.1% year over year, according to Walmart. The company said it is also gaining more buyers, especially from high-income households.
E-commerce sales rose 22% in the US, led in part by in-store fulfillment pickup and delivery.
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Telsey Advisory Group Senior Managing Director Joe Feldman predicted earlier this month that holiday shoppers “may remain tight-lipped and selective about their spending, including a gradual return to the product of choice.”
However, the National Retail Federation (NRF), the largest retail group in the US, reported little growth in holiday shopping.
The NRF predicted that total spending between November and December will grow between 2.5% and 3.5% in 2023 to between $979.5 and $989 billion.
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