Walmart on Tuesday reported an 8.7% year-over-year revenue increase to $152.8 billion for the third quarter. Walmart’s U.S. comp sales were up 8.2%, and e-commerce increased by 16%.
The retailer’s operating income fell 53% from last year to $2.7 billion, including $3.3 billion in legal charges “related to opioid legal settlements,” which the company announced a settlement framework for to resolve outstanding lawsuits. Gross profit rates dropped by 89 basis points in part due to markdowns and a mixture of U.S. sales. Grocery sales were a standout for the company, with the U.S. business gaining market share according to CEO Doug McMillon, but general merchandise experienced a decline in comp sales with markdowns pressuring gross margin.
Walmart also raised its full-year guidance, expecting net sales growth of 5.5% compared to a previously projected 4.5%. Adjusted operating income is now expected to decline by 6.5% to 7.5%, a more positive outlook than previously expected 9% to 11%.
Source: Retail Dive
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