Walmart: U.S. e-commerce sales

Walmart’s U.S. segment net sales increased $8.2 billion, or 8.5%, and $18.8 billion, or 6.5%, for the three and nine months ended October 31, 2022, respectively, compared with the same periods of the prior fiscal year.

The increases were due to comparable sales of 8.5% and 6.5% for the three and nine months ended October 31, 2022, in that order, driven by average ticket growth, including strong food sales and higher inflation impacts in certain merchandise categories, as well as transaction growth.

Thus, Walmart U.S. segment e-commerce sales contributed positively 1.0% and 0.4% for the three and nine months ended October 31, 2022, respectively, which was driven primarily by in-store pickup and delivery.

Gross profit rate decreased 77 basis points for the three months ended October 31, 2022, compared to the same period in the prior year, primarily due to net markdowns and shifts in product mix toward lower margin categories, partially offset by price management impacts driven by higher inflation.

Walmart

For the nine months ended October 31, 2022, gross profit rate decreased 75 basis points primarily due to net markdowns and shifts in product mix toward lower margin categories, as well as higher supply chain costs, partially offset by price management effects driven by higher inflation.

Meanwhile, operating expenses as a percentage of net sales decreased 60 basis points in the three months ended October 31, 2022, compared with the same period last year, primarily due to strong sales growth and lower incremental Covid-19 costs, partially offset by higher salary costs.

On the other hand, Walmart International segment net sales increased $1.7 billion, 7.1%, and decreased $0.6 billion, -0.7%, in the three and nine months ended October 31, 2022, respectively, compared to the same periods in the prior year.

In the three months ended October 31, 2022, the increase was primarily due to positive comparable sales in most of its international markets, which also outpaced inflation, and the advancement of sales events.

These increases were partially offset by negative foreign exchange fluctuations of US$1.5 billion.

For the nine months ended October 31, 2022, the decrease in net sales was due to a decrease of $5.0 billion related to the divestiture of its U.K. and Japan operations during the first quarter of fiscal 2022 and negative foreign exchange rate fluctuations of $2.8 billion.

These declines were largely offset by positive comparable sales that outpaced inflation in most of its remaining markets and the timing of sales events.