Walmart this morning released its third quarter results: Total revenue was up 5.8 percent to $179.5 billion, while operating income was down 0.2 percent, at $6.7 billion.
Other stats:
• Global e-commerce sales were up 27 percent.
• Global advertising revenue was up 53 percent.
• US same store sales were up 4.5 percent.
• Sam’s Club same store sales were up 3.8 percent.
• Walmart International same store sales were up 11.4 percent.
CNN this morning assessed the numbers this way:
“Walmart is proving to be America’s antidote to the cost of living crisis.
“A growing number of Americans are heading to Walmart for groceries and clothing as inflation and high prices squeeze their budgets: Walmart’s business in the United States is surging and it’s gaining market share from rivals, the company said Thursday in its quarterly financial report.
“Walmart’s gains have been led by middle-class and upper-income households turning to its stores and website to try to save money.”
And, from the Wall Street Journal:
“The solid results from the country’s largest retailer by revenue show that shoppers overall are still spending when they think there is good value, even as they remain nervous about the state of the economy and contend with years of higher prices.”
In a prepared statement, outgoing Walmart CEO Doug McMillon said, “The team delivered another strong quarter across the business. eCommerce was a bright spot again this quarter. We’re gaining market share, improving delivery speed, and
managing inventory well. We’re well- positioned for a strong finish to the year and beyond that, thanks to our associates. It’s been an honor to serve them as CEO, and I’m as excited about the future of this company as I’ve ever been. John Furner (McMillon’s designated successor) is a fantastic leader with a proven track record. I couldn’t be happier for him and for Walmart.”
KC’s View:
A tough economy plays into Walmart’s sweet spot, and it has developed its broader infrastructure – advertising, e-commerce, AI – in a way that supports the lower pricing structure that plays to the moment.
In some ways, there is more competition in that space. Walmart still has to compete with the likes of Aldi and Lidl, in addition to strong price-value players such as WinCo. But Walmart remains the king of this particular jungle, with every intention of growing its dominance in impressive ways.
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