- WMT -1.67% ^IXIC +0.88% OPAI.PVT
Walmart (WMT) reported third quarter profits and sales that topped forecasts on Thursday as the world's largest retailer continues to see growth in an uncertain consumer environment that has challenged some of its key rivals.
The company reported adjusted earnings per share of $0.62, above the $0.60 that Wall Street analysts were expecting, according to data from Bloomberg. Revenue rose 6% from the prior year to $179.5 billion, above the $177.6 billion that had been expected.
Same-store sales at its US business also topped expectations, rising 4.5% against forecasts for a 4% rise. The company reported a 1.8% rise in foot traffic and a 2.7% rise in the average ticket at its US stores.
On a call with investors, CEO Doug McMillon said the company "saw strength across income cohorts and especially with higher income households." Last week, McMillon shared plans to retire early next year. John Furner, current Walmart US president, is set to take the helm.
Walmart stock rose as much as 2.9% following the results.
NYSE - Delayed Quote • USD (WMT) Follow View Quote Details 105.32 -1.79 (-1.67%) At close: 4:00:02 PM EST Advanced ChartThe company also raised its guidance for the fiscal year, saying it now expects net sales to increase in the range of 4.8%-5.1%, up from 3.75%-4.75% previously. Walmart said its adjusted earnings are expected to fall within the range of $2.58-$2.63, up from the previous expectation of $2.52-$2.62.
Its wholesale business, Sam's Club, grew 3.8%, less than the 4.8% Wall Street predicted. Walmart's global eCommerce sales rose 27% in the quarter.
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The company also said it expects capital expenditures for the year to tally 3.5% of its net sales, the high end of its previous expectation for these costs to fall in a range of 3%-3.5% of its net sales.
In the quarter, grocery sales increased by low single digits, which the company attributed to "price Rollbacks and delivery convenience," resulting in unit volume growth and shared gains. In the US, grocery makes up a majority of its sales, about 60%. McMillon said in comments that the company is gaining market share in its grocery segment.
The company also echoed comments from many of its retail peers that lower-income consumers remain under pressure.
"When we look at low-income cohort versus middle versus higher income, we have seen some moderation in spending in the low-income cohort," CFO John David Rainey said on the call.
Rainey added the disparity in wage growth between high- and low-income consumers in October "was as large as it's been in almost a decade ... we're keeping a watchful eye on it."
Story Continues
Sign at the entrance to a Walmart in Venice, Fla. (Erik McGregor/LightRocket via Getty Images) · Erik McGregor via Getty Images Walmart also announced that it will move its stock listing to the Nasdaq from the NYSE.
McMillion said the move "aligns with the people-led, tech-powered approach to our long-term strategy." The company will continue to trade under the same WMT ticker.
The company announced a partnership with OpenAI in mid-October; however, the exact details of how it will work have yet to be announced.
When asked about agentic AI's role in the company, Furner said there is a "really broad assortment" of use cases, like AI suggesting full baskets to guests, which he believes is "going to be really powerful."
StockStory aims to help individual investors beat the market. Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at [email protected].
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