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Oct 29, 2021
Walmart Q3 2022 Earnings Report
Walmart's Q3 2022 earnings exhibited strong sales and profit growth, driven by its omnichannel focus and market share gains in grocery.
Key Takeaways
Walmart's Q3 2022 earnings revealed a 4.3% increase in total revenue to $140.5 billion, with Walmart U.S. comp sales growing by 9.2%. Adjusted EPS reached $1.45, and the company raised its full-year guidance.
Walmart U.S. comp sales grew by 9.2%, with a 15.6% two-year stack.
Adjusted EPS was $1.45, excluding certain items.
Sam's Club comp sales increased by 13.9%, with e-commerce sales growing by 32%.
Walmart International net sales were $23.6 billion, impacted by divestitures.
Walmart
Walmart
Walmart Revenue by Segment
Walmart Revenue by Geographic Location
Revenue by Segment
Walmart U.S. Revenue
CapyFin.comWalmart International Revenue
CapyFin.comSam's Club U.S. Revenue
CapyFin.comMembership & Other Income Revenue
CapyFin.comRevenue by Geographic Location
U.S. Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
The company expects Walmart U.S. Q4 comp sales of around 5% and raises EPS guidance for the third consecutive quarter.
Positive Outlook
- Walmart U.S. comp sales above 6%, excluding fuel
- FY22 GAAP EPS of around $5.00
- Adjusted EPS of around $6.40 versus prior guidance of $6.20-$6.35
- FY22 capital expenditures of around $13 billion
- Company expects Walmart U.S. Q4 comp sales of around 5%
Challenges Ahead
- Walmart U.S. inventory up 11.5% ahead of holidays
- Consolidated gross profit rate decreased 42 basis points, primarily due to increased supply chain costs
- A higher mix of lower margin fuel business in the U.S.
- Consolidated operating expenses as a percentage of net sales declined 4 basis points reflecting strong sales growth and lower expenses for COVID-19, offset by investments in wages.
- Consolidated operating income was $5.8 billion, an increase of 0.2%, negatively affected by $0.4 billion related to divestitures, or about 750 basis points.
Revenue & Expenses
Visualization of income flow from segment revenue to net income