Wal-Mart Stores Inc posted better-than-expected third quarter results on Tuesday, with U.S. same-stores sales up 1.5% – the fifth consecutive quarterly increase.
The retailer reported revenue of $117.4 billion, while revenue at constant currency basis was $122.4 billion, an increase of 2.8%.
International net sales were $29.8 billion. On a constant currency basis sales reached $34.7 billion.
Net profit dropped to $3.304 billion, or $1.03 per share, from $3.711 billion, or $1.15 per share, last year. According to Reuters, analysts had forecast 98 cents per share.
On a call with reports, Greg Foran, chief executive of U.S. operations, said: “We are starting to get some good momentum,”
E-commerce sales and GMV globally increased approximately 10% on a constant currency basis.
Free cash flow for the nine months ended October 31, 2015 was $6.8 billion, down from $7.2 billion in the prior year.
Doug McMillon, President and CEO, Wal-Mart Stores, Inc., said:
“We are pleased with the continued sales growth in Walmart U.S. and in our international business. Strong traffic and our fifth consecutive quarter of positive comps in Walmart U.S. stores show we are taking the right steps to win with customers. Although we still have work to do, we are positioning for sustainable growth through investments in people and technology to deliver a seamless shopping experience at scale.”
Charles Holley, Executive Vice President and CFO, Wal-Mart Stores, Inc, said:
“We delivered solid earnings per share that was well within our guidance. Looking ahead, we are narrowing our full-year earnings per share guidance to range between $4.50 and $4.65, including a range of $1.40 to $1.55 for the fourth quarter. This includes ongoing headwinds from currency, which we now expect will impact earnings per share by $0.16, compared to $0.15 from last quarter’s guidance. We continue to expect relatively flat total sales growth for the year. Without the currency impact, our full-year total net sales growth would be around 3 percent.”