(News Bulletin 247) – The distributor once again raised its annual revenue and profit targets at the end of a quarter in which it exceeded expectations. Walmart notably benefited from greater appeal from wealthy households.

In English, we call this “beat and raise”, that is to say delivering results above expectations and raising your objectives for the current financial year.

After having already done so during the publication of its second quarter results in August, Walmart did it again this Tuesday. This is appreciated on Wall Street where the stock rose 4% at the start of the session, consolidating its excellent stock market performance over the whole of 2024 (+66%).

In the third quarter, a period which runs from August to the end of October at Walmart, the mass distribution behemoth generated revenues of $169.6 billion, up 5.5% year-on-year. Its adjusted operating profit rose 8.2% to $6.7 billion while its adjusted earnings per share rose 13.7% to 58 cents.

Wealthy households take care of market share

According to a consensus cited by Bank of America, analysts expected revenue of $167.6 billion, adjusted operating income of $6.52 billion and adjusted earnings per share of 53 cents.

Walmart customers continue to spend more in its stores. The “average ticket” thus increased by 2.1% over the quarter. Furthermore, Walmart explains that its market share gains were generated by the wealthiest households (more than $100,000 in income). This category even represented 75% of these gains, according to Bloomberg. Which demonstrates that Walmart’s price/quality proposition manages to attract well beyond the most modest consumers.

“The past year has seen a very volatile economy in terms of consumption. However, despite these bumps, Walmart has steered its boat on a relatively smooth and successful trajectory,” commented Neil Saunders, director at GlobalData, in a note cited by AFP.

Regarding its outlook, Walmart now expects to generate sales growth of 4.8% to 5.1% excluding currency effects for its entire financial year ending at the end of January 2025, and adjusted operating income up 8.5%. and 9.25% and adjusted earnings per share between $2.42 and $2.47.

The company previously expected an increase excluding foreign exchange in its revenues of 3.75% to 4.75%, an adjusted operating profit increasing from 6.5% to 8% and an earnings per share ranging from 2.35 dollars to 2 .43 dollars.