Walmart reported better than expected and raised its full-year profit forecast

Walmart отчиталась лучше ожиданий и повысила годовой прогноз прибыли

American retailer Walmart published a report for the third quarter of 2022 fiscal year. The results were better than analysts' expectations, and the company raised its profit forecast for the fiscal year.

Revenue. Compared to last year, total revenue increased by 4%, up to $ 141 billion. US Walmart Sales Increase by 9%, number of transactions - per 6%. But in foreign stores, sales decreased by 20%, since the company sold part of its outlets in Japan, Argentina and Great Britain.

Like many, Walmart faces supply disruptions. In order not to be left with empty shelves during the holidays, the company even chartered its own ships. As a result, due to rising costs, Walmart's gross margin fell by 0,4%, to 24,6%. It is relatively little, because other retailers, eg Amazon, deal with crashes much worse.

Despite high inflation, Walmart wants to preserve its low-cost store image and doesn't pass costs onto shoppers. So, compared to last year, the average check in American supermarkets grew by only 3%. In this way, the company expects to take part of the market from competitors..

“In the fight against inflation, we are always on the side of buyers. Our scale and wide range of products allow us to work like this, to make it profitable for customers, and shareholders ", - said at Walmart.

Profit. Net profit fell by 40%, up to $ 3 billion. Primarily due to various non-operating costs. for example, the company repaid part of the debts ahead of schedule. Adjusted earnings per share, however, increased by 8%, to 1,45 $.

Forecast. Walmart said, that while there are no signs of a fall in consumer demand. for example, buyers did not start choosing smaller containers or cheaper brands. The company raised its forecast for adjusted earnings per share for this fiscal year from 6.2-6.35 to 6,4 $ and expects strong sales in the next quarter. To deal with the rush of the holidays, Walmart even increased its stock by 11%.

Promotions. Despite a good report, during the day, WMT shares fell by 2,5%, to 143,2 $. There are a couple of reasons for this., albeit insignificant.

The first is the reduction in gross margin. Profitability has not dropped as much, because the attendance and the average check have increased. But the indicator still turned out to be below analysts' expectations.: 24,6 vs 25,2%.

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Second, slower growth in US e-commerce, just for 8%. This slowdown can be partly explained by the high base effect. A year ago, during the quarantine, Walmart's digital sales grew by 79%. Now it's harder for the company to surpass its last year's growth rate..

Walmart отчиталась лучше ожиданий и повысила годовой прогноз прибыли

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