Summary
Walmart Inc. reported solid financial results for the third quarter of fiscal year 2020, ending October 31, 2019. Total revenues increased by 2.5% to $127.99 billion, driven primarily by a 2.5% rise in net sales to $126.98 billion. The company demonstrated improved profitability with consolidated net income attributable to Walmart surging to $3.29 billion, a significant increase from $1.71 billion in the prior year's quarter. Diluted earnings per share also saw a substantial jump to $1.15 from $0.58 year-over-year. Key operational strengths were evident in the Walmart U.S. segment, which reported a 3.2% increase in net sales and a 5.0% operating margin, reflecting strong comparable sales growth. While the Walmart International segment saw a modest 1.3% revenue increase due to currency headwinds and the divestiture of Walmart Brazil, the acquisition of Flipkart is starting to contribute to growth. Sam's Club experienced a 0.7% increase in net sales, with positive contributions from eCommerce and membership income.
Financial Highlights
50 data points| Revenue | $126.98B |
| Cost of Revenue | $95.90B |
| Gross Profit | $31.08B |
| SG&A Expenses | $27.37B |
| Operating Income | $4.72B |
| Interest Expense | $547.00M |
| Net Income | $3.29B |
| EPS (Basic) | $0.39 |
| EPS (Diluted) | $0.38 |
| Shares Outstanding (Basic) | 8.53B |
| Shares Outstanding (Diluted) | 8.58B |
Key Highlights
- 1Total revenues increased by 2.5% to $127.99 billion in Q3 FY2020.
- 2Consolidated net income attributable to Walmart rose significantly to $3.29 billion, up from $1.71 billion in the prior year's quarter.
- 3Diluted earnings per share increased to $1.15 from $0.58 year-over-year.
- 4Walmart U.S. segment showed robust performance with a 3.2% increase in net sales and a 5.0% operating margin.
- 5Walmart International segment's net sales grew 1.3%, though impacted by currency fluctuations and divestitures.
- 6Sam's Club reported a 0.7% increase in net sales, driven by comparable sales growth and membership income.
- 7The company continued to invest strategically in eCommerce, technology, and supply chain initiatives, allocating $3.86 billion in capital expenditures for these areas in the first nine months of the fiscal year.