Walmart(US:WMT)2024-11-19 11:59Revenue Growth - Consolidated revenue grew 5.5% to $169.6 billion, with operating income increasing 8.2% to $0.51 billion[4] - Net sales increased by 5.4% to $168,003 million for the three months ended October 31, 2024, compared to $159,439 million in the same period last year[19] - Total revenues grew by 5.5% to $169,588 million for the three months ended October 31, 2024, up from $160,804 million in the prior year[19] - Total revenues for the three months ended October 31, 2024, were $30.644 billion, an 8.0% increase year-over-year, and $169.588 billion for the nine months, a 5.5% increase[31] - Net sales for the three months ended October 31, 2024, were $30.277 billion, an 8.0% increase year-over-year, and $168.003 billion for the nine months, a 5.4% increase[31] eCommerce Performance - Global eCommerce sales grew 27%, driven by store-fulfilled pickup & delivery and marketplace[4] - Walmart U.S. comp sales increased 5.3%, with eCommerce sales up 22%[7][8] - Walmart International net sales grew 8.0% to $30.3 billion, with eCommerce sales up 43%[8][9] - Sam's Club U.S. net sales increased 3.9% to $22.9 billion, with eCommerce sales up 26%[11][12] Financial Performance - Operating income rose by 8.2% to $6,708 million for the three months ended October 31, 2024, compared to $6,202 million in the same period last year[19] - Consolidated net income attributable to Walmart surged by 910.4% to $4,577 million for the three months ended October 31, 2024, from $453 million in the prior year[19] - Basic net income per common share attributable to Walmart increased by 850.0% to $0.57 for the three months ended October 31, 2024, compared to $0.06 in the same period last year[19] - Consolidated net income for the nine months ended October 31, 2024, was $14.7 billion, up from $10.6 billion in the same period in 2023[23] - Walmart's operating income for the three months ended October 31, 2024, increased by 8.2% to $6.7 billion, compared to $6.2 billion in the same period in 2023[25] - Operating income for the three months ended October 31, 2024, was $1.204 billion, a 7.8% increase year-over-year, and $6.708 billion for the nine months, an 8.2% increase[31] - Adjusted operating income for the nine months ended October 31, 2024, was $21.744 billion, a 9.5% increase compared to the prior year[33] - Adjusted operating income in constant currency for the nine months ended October 31, 2024, was $21.808 billion, a 9.9% increase compared to the prior year[33] - Consolidated net income for the trailing twelve months ended October 31, 2024, was $20.41 billion, up from $16.40 billion in the same period in 2023[48] - Operating income for the trailing twelve months ended October 31, 2024, was $28.74 billion, compared to $25.32 billion in the same period in 2023[50] Cash Flow and Capital Expenditures - Operating cash flow increased $3.9 billion year-to-date to $22.9 billion, with free cash flow up $1.9 billion to $6.2 billion[6] - Net cash provided by operating activities for the nine months ended October 31, 2024, was $22.9 billion, compared to $19.0 billion in the same period in 2023[23] - Free cash flow for the nine months ended October 31, 2024, was $6.222 billion, an increase of $1.9 billion compared to the same period in the prior year[36] - Net cash provided by operating activities for the nine months ended October 31, 2024, was $22.918 billion, an increase of $3.9 billion compared to the prior year[36] - Capital expenditures for the nine months ended October 31, 2024, were $16.696 billion, an increase of $2.0 billion compared to the prior year[36] Inventory and Cost Management - Inventory decreased 0.6% to $63.3 billion while maintaining healthy in-stock levels[6][8] - Cost of sales increased by 5.1% to $127,340 million for the three months ended October 31, 2024, compared to $121,183 million in the same period last year[19] - Operating, selling, general and administrative expenses rose by 6.3% to $35,540 million for the three months ended October 31, 2024, from $33,419 million in the prior year[19] Membership and Advertising - Global advertising business grew 28%, including 26% growth for Walmart Connect in the U.S.[4] - Walmart U.S. gross profit rate increased 42 bps, with membership income up double-digits[8] - Membership and other income grew by 16.1% to $1,585 million for the three months ended October 31, 2024, up from $1,365 million in the prior year[19] Tax and Interest - Interest, net decreased by 11.0% to $478 million for the three months ended October 31, 2024, compared to $537 million in the same period last year[19] - Other gains and losses dropped by 97.2% to $132 million for the three months ended October 31, 2024, from $4,750 million in the prior year[19] - The reported effective tax rate for the three months ended October 31, 2024, was 22.7%, and 23.8% for the nine months[40] Asset and Investment Metrics - Walmart's total assets increased to $263.4 billion as of October 31, 2024, compared to $252.4 billion on January 31, 2024[21] - ROA increased to 7.8% for the trailing twelve months ended October 31, 2024, compared to 6.5% in the same period in 2023, driven by higher consolidated net income[46][48] - ROI rose to 15.1% for the trailing twelve months ended October 31, 2024, up from 14.1% in the same period in 2023, primarily due to increased operating income[46][50] - Average total assets for the trailing twelve months ended October 31, 2024, were $261.29 billion, up from $253.42 billion in the same period in 2023[48][50] - Average invested capital for the trailing twelve months ended October 31, 2024, was $292.67 billion, compared to $280.35 billion in the same period in 2023[50] - Total assets as of October 31, 2024, were $263.40 billion, up from $259.17 billion as of October 31, 2023[50] - Accumulated depreciation and amortization as of October 31, 2024, was $122.81 billion, compared to $118.12 billion as of October 31, 2023[50] - Accounts payable as of October 31, 2024, were $62.86 billion, up from $61.05 billion as of October 31, 2023[50] Comparable Sales Growth - Walmart U.S. comparable sales, excluding fuel, increased by 5.3% for the 13 weeks ended October 25, 2024, compared to 4.9% in the same period in 2023[26] - Sam's Club comparable sales, excluding fuel, increased by 7.0% for the 13 weeks ended October 25, 2024, compared to 3.8% in the same period in 2023[26] - Total U.S. comparable sales, excluding fuel, increased by 5.5% for the 13 weeks ended October 25, 2024, compared to 4.7% in the same period in 2023[26] Guidance and Future Expectations - Company raised FY25 guidance, expecting net sales growth of 4.8% to 5.1% and adjusted operating income growth of 8.5% to 9.25%[1][14] - Adjusted diluted earnings per share (Adjusted EPS) for the three months ended October 31, 2024, was $0.58, and $1.84 for the nine months[40]