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Walmart exceeded expectations in its third quarter (Q3) report. The largest retailer in the US had a strong revenue review for shareholders.
Walmart’s revenue report
Walmart reported a revenue of $124.89 billion, surpassing the projections of financial analysts. The earnings per share (EPS) was $1.08, also beating expectations. Same-store sales increased by 3.4%, a pleasant surprise in the wake of many other brick-and-mortar locations closing in the US.
Walmart grows with groceries and online sales
The chain store improved sales online as well, thanks to the purchase of the ecommerce company Jet.com. Shoppers drove digital profits up by 43%. The corporation hopes to continue the progress by purchasing brands that cater to underserved customers, like the plus-size clothing startup, Eloquii. Walmart is now closing in on Amazon to become the world's largest online retailer.
While Walmart is usually associated with household items, the retailer is also becoming a dependable grocery store for many shoppers. Groceries now make up 56% of the company’s profits. The corporation will also expand its food division by offering a grocery delivery service to its thousands of locations.
Chief executive officer (CEO), Doug McMillion, expressed his contentment with Walmart’s continued success.
‘We have momentum in the business as we execute our plan and benefit from a favourable economic environment in the US. We're accelerating innovation and utilising technology to shape the future of retail. We're making shopping at Walmart faster and easier. Our associates are equipped with the tools to serve customers better than ever before, and they're doing a great job,’ he said.
Walmart’s Q4 outlook
Walmart is bullish on its stock for Q4. The corporation thinks profits will rise during the holiday season with in-store and online shopping options.
'With the holidays approaching, customers can count on Walmart to save them money, and we'll also provide busy families with another important gift -- time back in their day,’ said McMillon.