Walmart Earnings: Retailer Anticipates a Successful Holiday Shopping Period, Stock Surges Again
Increased shopper demand for value and convenience, including delivery options, has led to unexpectedly high sales at Walmart from August to October. Sales are predicted to keep rising throughout the rest of 2024.
Walmart saw a sales jump of over 5% during the late summer and early fall months, as more higher-income households chose to shop at the giant retailer, often opting for express delivery services.
The company, situated in Bentonville, Arkansas, has also improved its sales projections for the fiscal year, which is a positive sign as the holiday shopping season approaches.
For its third quarter (August-October 2024), Walmart reported total revenue of $169.6 billion, which represents a 5.5% increase compared to the same quarter last year.
Sales in the U.S. climbed by 5.3%, surpassing analyst expectations of 3.73%, according to Bloomberg. Meanwhile, Sam’s Club locations saw sales rise by 7% compared to the previous year.
Walmart Stock Reaches Record High on Tuesday
Walmart’s stock value increased by 3% at the market’s opening and maintained that gain by closing at the same rate. Overall, shares have risen nearly 60% this year.
Optimistic Outlook for the Holiday Season
As a key player in the holiday shopping landscape, Walmart anticipates ongoing sales growth. The retailer has raised its annual forecast, expecting an overall sales increase of 4.8% to 5.1% for the fiscal year ending January 31, 2025.
Due to a shorter holiday shopping window this year—six fewer days between Thanksgiving and Christmas—Walmart and competitors like Amazon and Target kicked off Black Friday promotions earlier in the month.
Walmart’s online sales, including store pickup and delivery, jumped by 22%, while Sam’s Club recorded a 26% increase, the retailer stated. Households earning $100,000 or more accounted for 75% of the company’s recent sales growth, according to president and CEO Doug McMillon during a conference call with analysts. “Enhancing convenience for our customers is fueling our growth,” he noted.
“Everyone is looking to save both money and time,” McMillon said. “Consumers with more disposable income are responding positively to our offerings.”
As concerns about inflation lingered among shoppers, Walmart has focused on providing value. eMarketer analyst Blake Droesch explained to YSL News that Walmart has positioned its Walmart+ service as a beneficial product for consumers looking to save while shopping in-store and online, boosting membership revenue and e-commerce sales, and effectively supporting its advertising business.
This story has been updated with new information.
