Walmart's Q3 2016 Beats Expectations

Walmart is continuing to build momentum in its fresh and organic pursuits as it beat expectations in the third quarter of 2016. 

“In food, we saw our best topline results of the year, despite minimal inflation, which negatively impacted our total box comp by approximately 90 basis points,” Greg Foran, President and CEO of Walmart, U.S., said during a conference call with analysts. “Momentum from a solid Labor Day weekend continued through to Halloween.”

Walmart's stock was up 3.82% to $60.08 after the announcement of the results on Tuesday. 

Foran reiterated that grocery continues to be a key focus for the retail giant, who continued to accelerate its growth in the grocery line by adding 85 more locations to its online grocery pickup.

“We now have almost 140 locations across 25 markets that offer the customer the ability to order their groceries online and conveniently pick up at a time of their choosing,” he said, adding that while e-commerce sales and traffic were “softer than we would like.” Walmart also introduced a digital wishlist in time for the holiday shopping season.

Overall, the retailer’s e-commerce sales contributed about 15 basis points, having globally increased approximately 10% according to the report, and Foran said that, though pleased with the last quarter, it still has a ways to go.

Other financial highlights in the report included:

• Total revenue was $117.4 billion. On a constant currency basis, total revenue was $122.4 billion, an increase of 2.8%.
• Comp sales at Walmart U.S. were positive for the fifth consecutive quarter, up 1.5%. Traffic increased 1.7%.
• Customer experience scores continued to strengthen. Neighborhood Market comps increased approximately 8%, with strong growth from newer stores.
• Walmart International net sales were $29.8 billion. On a constant currency basis, sales reached $34.7 billion, led by Mexico and Canada. Operating income decreased 6.4%. On a constant currency basis, operating income increased 8.5%.

CNBC reports that currently Walmart sells food items in 11,000 retail units worldwide, with grocery and health and wellness making up about 67% of the company’s overall business.