- Walmart’s U.S. comparable sales rose 5.3%, driven by grocery and e-commerce growth.
- E-commerce sales surged 27%, with delivery and pickup services gaining strong traction.
- Membership income grew 22%, as Walmart+ and Sam’s Club added more loyal customers.
Walmart Inc. (NYSE: WMT) just dropped its Q3 FY25 earnings, and the retail giant did not disappoint. If you have been wondering how consumer spending is holding up—or why Walmart keeps winning—here is a breakdown of the key takeaways from their latest earnings.
1. Walmart’s Customers Are Spending More—and Smarter
Walmart’s total revenue climbed 6.2% on a constant currency basis, hitting a whopping USD169.6 billion. Even more exciting? Comparable sales in the U.S. grew by 5.3%, showing that customers are still opening their wallets despite economic uncertainties.
Here is what has been fueling the growth:
- Groceries Lead the Charge: With inflation squeezing budgets, more shoppers are turning to Walmart for affordable groceries.
- Higher Income Shoppers Flock to Walmart: Households earning over USD100,000 made up 75% of Walmart’s market share gains, proving that Walmart’s appeal isn’t limited to penny-pinchers.
- E-commerce is Booming: Online sales jumped by 27%, with faster delivery options and expanded product choices drawing in more customers.
2. Customers Love Walmart’s Value—and It’s Paying Off
Walmart is not just about low prices anymore; it is about saving customers time and making shopping convenient. Here is what resonates with consumers:
- Delivery and Pickup Growth: Curbside pickup grew fast, but delivery sales grew even faster. Walmart’s ability to bring goods to your doorstep—sometimes in under an hour—is a game-changer.
- Everyday Low Prices: Walmart continues to roll back prices on key items, with 6,000 price reductions this quarter alone. That is great news for budget-conscious shoppers—and for Walmart, which keeps building customer loyalty.
3. Sam’s Club is a Hidden Gem
Sam’s Club, Walmart’s membership-based warehouse store, is quietly crushing it. Comparable sales (excluding fuel) grew by 7%, while membership income soared 15%. The secret sauce? Features like free curbside pickup and express delivery, plus tech upgrades like Scan & Go, which lets members skip the checkout line entirely.
4. Walmart is Winning Globally Too
Walmart’s international operations are no slouch. Revenue outside the U.S. grew by 12.4% (constant currency), with particularly strong growth in:
- Mexico: Walmart outpaced competitors for the sixth straight quarter.
- China: Sam’s Club stores and e-commerce saw double-digit growth.
- India: Flipkart, Walmart’s e-commerce giant in India, reported massive sales during its Big Billion Days event.
5. The Future Looks Bright
Walmart raised its full-year guidance, projecting:
- 4.8%-5.1% sales growth for FY25.
- Operating income growth of 8.5%-9.25%, thanks to better margins from high-growth areas like e-commerce and advertising.
What This Means for Investors
Walmart is thriving because it’s hitting all the right notes: value, convenience, and innovation. By investing in delivery networks, digital tools, and global markets, Walmart is positioning itself as the ultimate shopping destination for all income levels.
For investors, Walmart offers stability and growth potential in uncertain times. If you are looking for a stock that benefits from both everyday essentials and future-focused strategies, Walmart deserves a spot on your watchlist.
Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.
