Walmart Announces Q3 FY 2024 Financial Results


In a November 16th release, Walmart Inc. (WMT) posted financial results for the 3rd quarter of Fiscal 2024 ending October 31st 2023. All U.S. retailers, both brick-and-mortar and online are subject to the same pressures from increased costs for goods, transport and labor in a competitive environment with most consumer demographics concerned over expenditure. As a multinational company, Walmart faces additional risks associated with currency fluctuation, geopolitical events and adverse policies by regulators in host-nations. Walmart serves as a bellwether for U.S retail combining groceries, clothing, electronics, drugs, toiletries and household necessities.


For the 3rd quarter of FY 2024 ending October 31st 2023 net income was $453 million, beating analysts’ estimates. Total revenue attained  $160,804 million yielding a profit margin of 0.3 percent.  Comparable figures for the 3rd quarter of fiscal 2023 ending October 31st 2022, were a net loss of $(1,798) million on total revenue of $152,813 million with a negative margin of (1.2) percent. Diluted EPS increased from a negative $(0.66) for the 3rd quarter of FY 2023 to $0.17 for the most recent quarter.


Comparing the 3rd quarter of 2024 with the corresponding quarter of the previous year, revenue was up 5.2 percent; comparable store sales up 4.9 percent; gross margin rose from 24.3 percent to 24.6 percent; operating margin increased from 1.8 percent to 3.9 percent for the most recent quarter.


In commenting on Q3 results, Doug McMillon, CEO and president expressed confidence by stating “ We had strong revenue growth across all segments for the quarter” He added “Looking ahead our inventory is in good shape, the teams are focused and our associates are ready to serve customers” 


Forward guidance for FY 2024 was revised upwards and included:- A 5.0 to 5.5 percent increase in consolidated revenue; operating income improving to a range of 7.0 to 7.5 percent, and an adjusted EPS of  $6.40 to $6.48.


For the 3rd quarter of FY 2024 segment results comprised:-

  • Walmart US: Net sales of $109,400 million, up 4.4 percent over Q3 FY 2023. Operating income $5,000 million with strong gains in groceries. Comparable same-store sales were up 4.9 percent (excluding fuel). Growth in E-commerce, 24 percent over the corresponding quarter of FY 2023. Inventory declined approximately five percent.
  • International: Net sales of $28,000 million, up 10.8 percent. Operating income was $1,100 million. Growth in E-commerce, -3.0 percent over the corresponding quarter of FY 2023.
  • Sam’s Club U.S.: Net sales of $22,000 million, up 2.8 percent excluding fuel. Operating income was $600 million. Comparable same-store sales were up 3.8 percent. Membership revenue grew 7.2 percent. Growth in E-commerce, attained 16 percent over the corresponding quarter of FY 2023, attributed to curbside pick-up service and delivery.


Walmart operates more than 10,500 stores worldwide of which 5,400 are in the U.S. including 600 Sam’s Club warehouses. Walmart offers 46 banners in 19 nations and employs 2.1 million.


On October 31st 2023, Walmart posted assets of $259,174 million including goodwill of $28,015 million. Long-term debt and lease obligations amounted to $54,829 million. The Company had an intraday market capitalization of $418,130 million at close of trading on November 18th. WMT trades with a forward P/E of 22.0 and has ranged over a 52-week period from $136.09 to $169.94 with a 50-day moving average of $162.22.  Twelve-month trailing operating margin was 3.9 percent and profit margin 2.6 percent.  Return on assets over the past twelve months was 7.3 percent and the return on equity 19.7 percent. At close of trading on November 16th pre-release, WMT was priced at $169.77. On November 17th WMT opened post-release at $157.33 down 7.3 percent.