Walmart Inc (NYSE:WMT)’s third-quarter earnings slightly beat analysts’ expectations as grocery shoppers benefited from the company’s massive buying power and scale.
Efficiencies have been achieved despite ongoing supply chain woes through negotiations with manufacturers, bulking up inventory, and chartering ships to transport goods globally.
“We gained market share in grocery in the US, and more customers and members are returning to our stores and clubs around the world,” commented Doug McMillon, president and chief executive officer (CEO) of Walmart.
America’s largest retailer by annual sales saw revenue grow by 4% to US$140.53bn in the three months to the end of September from US$134.70bn a year prior – exceeding analysts’ expectations of US$135.60bn.
Walmart’s e-commerce (internet sales) rose 8% in the quarter and 87% over two years with Mexico, China, and Flipkart (an Indian e-commerce company owned by Walmart) being the largest growers.
The company’s consolidated gross profit rate fell 0.42% relative to 2020’s third quarter, primarily attributed to higher supply chain expenses.
“Our momentum continues with strong sales and profit growth globally,” confirmed McMillon.
Walmart lifted its earnings per share (EPS) prediction for the fourth quarter to US$6.40 compared to its earlier guidance of US$6.20 to US$6.35.
The multinational retail store has repurchased US$7.4bn in shares year-to-date, representing around 35% of the US$20bn share-repurchase program authorised earlier this year that replaced a prior one approved in 2017.
The company’s shares closed at US$143.17, down 2.55%, on Tuesday giving it a market capitalization of US$399bn.
“Looking ahead, we have the people, the products, and the prices to deliver a great holiday season for our customers and members,” added McMillon.