Walmart reported revenue of $152.8 billion in its fiscal third quarter, up 8.7% compared to the same quarter in 2021, but net income fell 158% to a loss of $1.798 billion. The income drop was partially attributed to a one-time $3.1 billion settlement in a national opioid case.
The Bentonville-based retailer also reported Tuesday (Nov. 15) a per share loss of $1.11 on investments primarily related to the company’s JD.com business.
The per share quarterly loss was 66 cents, but a $1.50 per share gain prior to the one time charges. The non-adjusted gain was better than the consensus estimate of $1.33. Walmart reported operating income of $2.7 billion in the quarter, down 53% from $5.8 billion in the same period of 2021. Without the one-time adjustments, operating income was $6.1 billion, up 4.6%.
“We had a good quarter with strong top-line growth led by Walmart and Sam’s Club U.S., along with Flipkart and Walmex. We continued to gain market share in grocery, helped by unit growth in our food business,” CEO Doug McMillon noted in the press release.
In the first three fiscal quarters of the year, total revenue is $447.241 billion, up 6.5% compared with the same period in 2021. Net income in the first three quarters is $5.405 billion, down 46.5% compared with the same period in 2021.
Ben Bienvenu, an analyst with Stephens Inc., said Walmart’s results across all segments were stronger than expected. (Stephens Inc. works with Walmart on investment banking at times as is compensated accordingly.)
“We think the company is carrying significant momentum heading into the holiday season as the business is well positioned in this challenged consumer backdrop,” Bienvenu said Tuesday.
Shares of Walmart (NYSE: WMT) jumped early on Tuesday trading at $148.53, up more than 7% in heavy volume. Walmart shares are up 1.6% year to date.
SEGMENT RESULTS
Walmart U.S. reported sales revenue of $104.8 billion in the quarter, up 8.5% year over year. Walmart also benefited from higher-than-expected same-store sales in the U.S. which rose 8.2% in the quarter. Transactions were up 2.1% with average ticket up 6%. E-commerce comp sales rose 16% from a year ago and contributed about 0.80% of the overall U.S. same-store-sales comp.
Walmart said it continues to work through its inventory overhang with U.S. inventory still up 12.4% at the end of quarter, which equated to roughly $1 billion in value. Walmart said inventory overstocks came down from 20% in the second quarter and most of the product is in stores, not stuck in the supply chain like last year.
McMillon said the retailer continues to attract more higher-income households as value becomes more important to consumers. He said the inventory issues remain but Walmart is engineered as flexible.
“If we can’t sell them one thing, we will sell them something else and even lower the price if we have to,” McMillon said in his closing remarks of the analyst call on Tuesday.
Sam’s Club reported net sales revenue of $21.4 billion in the quarter, up 12.8% year over year. Comp sales, excluding fuel, rose 10% with e-commerce adding 1.2% of the gain. Membership income grew 8% in the quarter to an all-time high. Walmart does not disclose specific membership numbers. Sam’s Club did have a $1 billion charge related to inventory in the quarter which helped erode Walmart’s overall gross margin. Walmart made light of the inventory charge saying it was basically an accounting function and most of the charge will be recouped in the next couple of quarters.
Walmart International reported net sales of $25.3 billion, up 7.1% year over year. The sales were negatively impacted $1.5 billion by currency fluctuations. Judith McKenna, CEO of Walmart International, said segment inventories were in good shape heading into the holiday season. She said Walmex continues to report strong double-digit sales and operating growth helping to bolster up the segment performance.
FAQs
BENTONVILLE, Ark., Nov. 15, 2022 — Walmart announced today it has agreed to a $3.1 billion nationwide opioid settlement framework designed to resolve substantially all opioid lawsuits and potential lawsuits by state, local, and tribal governments, if all conditions are satisfied.
Is Walmart loosing money? ›
In the third quarter, Walmart's net income was $453 million ($0.17 per share, compared to a loss of $0.66 in Q3 2022). In the year-ago quarter, the company posted a $1.8 billion loss due to a costly lawsuit settlement for the company.
Is Walmart operating at a loss? ›
Walmart annual net income/loss for 2022 was $13.94B, a 1.71% increase from 2021. Walmart annual net income/loss for 2021 was $13.706B, a 9.83% decline from 2020.
What is the role of Walmart in the opioid crisis? ›
OAKLAND – California Attorney General Rob Bonta today announced reaching a multistate settlement in principle with Walmart to resolve allegations that the company helped fuel the opioid crisis by failing to appropriately oversee the dispensing of opioids at its pharmacies.
How much will I get from the Walmart settlement? ›
The settlement amount is 2% of the purchases you made, up to a total of $500. Payments will be distributed via online methods like Venmo or Zelle, but there's also a backup option to receive a check. (Payout amounts could be adjusted depending on how many claims are submitted.)
How long does it take to get a settlement from Walmart? ›
It could take months to receive your payment, so be patient. The final approval hearing is slated for June 12, 2024. Barring any delays or appeals, the payment processing will start then. Walmart plans to provide updates regarding the settlement and when payments will be made here.
Why is Walmart getting rid of self-checkout? ›
Still, rising theft — part of what retailers call "shrink" — is the primary reason self-checkout is being ditched in some stores and restricted in others, according to Saunders.
Why are Walmart closing in usa? ›
Walmart will close three more US locations, bringing the total to six in 2024 so far. The company cited financial underperformance as the reason for the decisions. The company closed at least 22 locations across 14 states last year.
Is Walmart really getting rid of self-checkout? ›
Walmart is removing self-checkout from two stores, while Target and Dollar General have scaled back. Retailers are pulling back, but not abandoning, self-checkout, Neil Saunders, managing director, retail, at GlobalData told CBS MoneyWatch.
Why is Walmart changing their name? ›
While Wal-Mart Stores as a corporate legal name is rarely used in public-facing materials or in stores themselves, CEO Doug McMillon said in a statement that he felt the name change was needed to be “consistent with the idea that you can shop us however you like as a customer.” He added: “Our customers know us as ...
McMillon earned $25.7 million in total compensation in fiscal 2022. He and wife Shelley McMillon are philanthropists who've donated millions to various causes.
Who I am hurting by shopping at Walmart? ›
There is an essay in Time entitled "Who I'm Hurting By Shopping At Walmart" by Alana Semuels, the magazine's economic correspondent, which focuses on the increasing and crushing power of Walmart, as well as the dollar store chains that are spreading around the country like wildfire.
Who profited from the opioid epidemic? ›
Purdue spent the next decade misleading the DEA, defrauding the United States, paying kickbacks to companies that would steer patients onto OxyContin, and exacerbating the opioid epidemic. All the while the Sackler family profited immensely from the deaths of millions of Americans.
What companies are involved in the opioid scandal? ›
Purdue Pharma is inextricably linked with the opioid crisis. Owned by the Sackler family, the company is known for aggressively and deceptively marketing opioids —OxyContin in particular — to prescribing doctors.
How does Walmart treat their employees? ›
No matter what the role is or where they are in their careers, associates have access to great benefits that bring our 'save money, live better' promise to life. Physical well-being benefits. Medical coverage starts at just $34.50 and includes virtual healthcare programs.
Who got money from the opioid settlement? ›
In 2023, state and local government received about $1.5 billion in settlement funds from more than a dozen companies that manufactured, sold, or distributed prescription painkillers and were sued for their role in fueling the opioid crisis.
How much did Walgreens pay for the opioid settlement? ›
Paxton Secures $340 Million for Texas in Opioid Settlement With Walgreens. Attorney General Paxton announced a $5.7 billion settlement with Walgreens, with over $340 million designated for Texas, for their role in the nationwide opioid epidemic.
How much did Big Pharma payout for opioids? ›
The three largest US pharmacy chains have agreed to pay $13bn in a settlement to resolve lawsuits claiming they contributed to the opioid epidemic by dispensing opioid drugs despite obvious red flags.
