Walmart’s strong Q3 punctuated by revenue, e-commerce growth
Walmart is riding the wave of its growth in the second quarter of fiscal 2025 as the retailer reports a strong Q3 led by a 5.5% lift in total revenue. For the 13-week period ended Oct. 25, Walmart also saw comp sales increase 5.3% year-over-year, with positive growth in general merchandise.
In Q3, e-commerce sales at Walmart U.S. grew 22%, led by store-fulfilled pickup and delivery, as well as marketplace purchases. Operating income was up 9.1% with expansion of gross margin and membership income, lower losses in e-commerce, and an improved business mix.
According to Walmart, artificial intelligence is being used to improve its product catalog by creating or improving more than 850 million pieces of data. That work would have required 100 times the current workforce if done manually—proving that its investments in technology are paying off.
“We had a strong quarter, continuing our momentum. Our associates are working hard to save people time and money and to transform our business,” said Doug McMillon, president and CEO, Walmart. “In the U.S., in-store volumes grew, pickup from store grew faster, and delivery from store grew even faster than that. Our teams are executing and delighting our customers and members with the value and convenience they expect from Walmart.”
Further, consolidated gross margin rate was up 21 bps, for the quarter, led by Walmart U.S. Consolidated operating income increased $0.5 billion, up 9.8% due to higher gross margins and growth in membership income. Additionally, Walmart’s global advertising business grew 28%, including 26% for Walmart Connect in the United States, during Q3.
On the Sam’s Club side of the business, net sales rose 3.9% year over year to $22.9 billion, with growth across club and digital channels, led by food and health and wellness categories. E-commerce sales increased 26%, led by club-fulfilled pickup and delivery, and the wholesaler also saw share gains in grocery and general merchandise categories.
With a strong Q3 in the rear view, Walmart is raising its guidance for the remainder of FY25. The company expects net sales to grow 4.8% to 5.1% and adjusted operating income to grow 8.5% to 9.25% in constant currency.
This article was first published on sister site Progressive Grocer
