Shoppers’ interest in value and convenience, including deliveries, helped drive higher than expected sales at Walmart from August to October. Sales are forecast to increase the rest of 2024.
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Cheddar
Walmart increased sales more than 5% during late summer and early fall as upper-income households shopped more at the world’s largest retailer and were more likely to pay for quick deliveries.
The Bentonville, Arkansas-based company also raised its sales and forecast for the fiscal year annual sales, a positive sign for Walmart with the arrival of the holiday shopping season.
Consolidated revenue during the company’s third quarter (Aug.-Oct. 2024) totaled $169.6 billion, up 5.5% over the same three-month period a year ago.
Walmart sales in the U.S. rose 5.3%, higher than the 3.73% that analysts were expecting, according to Bloomberg. Sales at Sam’s Club locations across the U.S. were up 7% over a year ago, the company said.
Walmart stock rises on open Tuesday
Walmart shares rose 3% when the market opened. Shares are up nearly 60% so far this year.
Positive outlook for holiday season
The retailer, which serves as a bellwether for the upcoming holiday shopping season, expects continued higher sales. To that end, Walmart increased its forecast for the full fiscal year, which ends in Jan. 31, 2025, forecasting a sales increase of 4.8% to 5.1%.
With a shorter holiday season than usual – six fewer days between Thanksgiving and Christmas – Walmart and competitors including Amazon and Target began the shopping season earlier with Black Friday events starting earlier this month.
E-commerce sales including store-fulfilled pickup & delivery rose 22% at Walmart and 26% at Sam’s Club in the U.S., the company said.Households making $100,000 or more made up 75% of Walmart’s share gains, president and CEO Doug McMillon said during a conference calls with investment analysts on Tuesday morning. “Becoming more convenient for our customers and members is helping drive our growth,” he said.
“Everybody wants to save money and everybody wants to save time,” McMillon said. “Those who have more discretionary income … are liking what we are doing.”
As shoppers’ concern about inflation grew, Walmart made an effort to provide consumers value, eMarketer analyst Blake Droesch told USA TODAY in a statement. “They positioned Walmart+ as a product for consumers to save money shopping both in-store and online, which has boosted membership revenue, ecommerce sales, and benefits its growing ad business,” he said.Â
Contributing: Reuters.
Follow Mike Snider on X and Threads: @mikesnider & mikegsnider.
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