Walmart (WMT, Financial), the American retail giant, reported its financial results for the third quarter of fiscal year 2025. The company's revenue for the quarter reached $169.88 billion, marking a 5.5% increase compared to the previous year and surpassing analysts' expectations of $167.49 billion. Net sales amounted to $168.03 billion, a 5.4% rise, while membership and other revenues increased by 16.1% to $1.585 billion. Operating income rose by 8.2% to $6.708 billion, with adjusted earnings per share standing at $0.58, over analysts' forecast of $0.53.
In the United States, net sales were $114.9 billion, representing a 5.0% growth, and same-store sales, excluding fuel, grew by 5.3%, outperforming the anticipated 3.7% increase. International sales saw an 8.0% boost to $30.3 billion. Although there was a slowdown in average transaction growth, customers were purchasing more items per visit, primarily driven by households with incomes exceeding $100,000. According to CFO John David Rainey, shoppers continue to spend selectively but consistently.
Looking ahead, Walmart has revised its fiscal 2025 forecasts upwards, now expecting net sales to increase by 4.8%-5.1%, compared to the previous guidance of 3.75%-4.75%. Adjusted operating income is anticipated to grow by 8.5%-9.25%, up from the earlier prediction of 6.5%-8.0%. Adjusted earnings per share are projected to be in the range of $2.42-$2.47, higher than the prior estimate of $2.35-$2.43. Rainey explained that the strong third-quarter performance prompted the upgraded annual outlook, with expectations of modest growth in the next quarter.
