Walmart's Q3 Performance: Resilient Growth and E-Commerce Success

Neha Ghai
November 29, 2023

At a Glance

  • 5.2% growth in net revenue sales reaching $160.4 billion.
  • 74% grocers investing in increasing demand of pickup and delivery options.
  • Walmart's omnichannel model in its fiscal third-quarter net income rose to $453 million
  • 20% increase in the overall global advertising bussiness.

The retail giant has reported robust results in the third quarter of 2024, seeing a notable 5.2% growth in net revenue sales compared to the same period in 2022, reaching $160.4 billion. The strong performance is attributed to increased sales in the U.S., especially in the grocery and health and wellness sectors.

Despite this success, Walmart acknowledges challenges, particularly the impact of consistently high food prices on consumers and the company's financials. In response, the focus is reducing grocery prices for the upcoming winter holiday season, aiming to enable consumers to allocate more funds to general merchandise spending.

Key Highlights 

Revenue Growth

Walmart delivered a robust quarter, witnessing a 5.2% surge in total sales and a 4.9% uptick in U.S. in-store sales. While general merchandise sales faced a slowdown, the standout performers were the grocery and health and wellness departments. 

The pivotal role of Walmart's pickup and delivery services became evident, driving a substantial 24% growth in e-commerce. Grocery Doppio’s grocery technology update emphasizes that 74% of grocers are actively investing to align with the national trend, gearing up for increased demand in delivery and pick-up options.

Operational Investments and Financial Performance

Walmart's omnichannel model has played a crucial role in its fiscal third-quarter net income, which rose to $453 million, or 17 cents per share, compared to a loss of $1.8 billion, or 66 cents per share, in the same period last year. The company's operational investments and strategic focus on omnichannel capabilities and store remodeling have translated into strong sales, positioning Walmart as a leader in the retail landscape.

Diversification and Digital Engagement

Walmart is changing the game by exploring new ways to make money beyond traditional retail. They're tapping into advertising with Walmart Connect and memberships with Walmart+. In Q3, Walmart Connect's ad business soared by 26% and Sam’s Club by 27%, contributing to a 20% overall increase in their global advertising business. 

Investments in AI and Digital Adoption

Walmart's commitment to digital innovation is evident in its adoption of generative AI to enhance search and chat experiences. CEO Doug McMillon highlighted ongoing tests of this technology for customers using the Walmart app on iOS, with plans to expand its rollout in the coming weeks and months. 

Future Outlook

The company slightly raised its full-year guidance, expecting a growth range between 5% and 5.5% for fiscal year 2024, and is poised for continuous success as it heads into the critical holiday season and beyond.