Walmart’s third quarter results are out. While the retail giant beat earnings estimates, revenue fell short of analysts' expectations.
Earnings per share came in at $1.08 (adjusted) versus estimate of $1.01. Revenues increased +1.4 percent to $124.89 billion from $123.18 billion a year ago, and missing expectations of $125.55 billion. (Analysts' expectations given according to a survey by Refinitiv).
Walmart’s U.S. same-store sales grew +3.4%, higher than expected +3.1%.
International sales declined -2.6% during the third quarter to $28.8 billion - one of the factors could be its selling of the majority of its Brazilian business to private-equity firm Advent International.
The company’s online sales surged +43% during the third quarter. It has been upping the ante on its digital presence in recent years. Most recently, it acquired retailer Eloquii and intimates online retailer Bare Necessities. In August, it bought a controlling stake in Indian e-commerce company Flipkart for $16 billion. According to CFO Brett Biggs, the company is on pace to achieve +40% growth in e-commerce sales for the full year (as mentioned by CNBC).
Gearing up for the holiday season, Walmart is offering potentially faster shopping experience at its physical stores by providing mobile scanners so shoppers can pay on spot - i.e., without having to queue up at registers. It is also providing store maps on its app so customers can navigate aisles and sections of its stores/supermarkets more easily.