Walmart Releases Q3 FY21 Earnings

Total revenues were $157.3 million compared with $165.8 million in the prior year period. Adjusted for the sale of Fannie May Confection Brands (which closed on May 30, 2017), total revenues increased 1.81 percent. EPS loss for the quarter was $0.20 per share, compared with a loss of $0.24 per share in the prior year period. Adjusted for the sale of Fannie May, the prior year period EPS loss was $0.201 per share. Adjusted EBITDA1 was a loss of $10.1 million, compared with an Adjusted EBITDA1 loss of $13.1 million in the prior year period. Reflecting the sale of Fannie May, Adjusted EBITDA1 loss in the prior year period was $9.5 million. Click Read More below for additional information.

A summary of results for the first quarter ended April 30, 2022 as compared to the first quarter ended May 1, 2021: *Net sales of $813 million, up 4% as compared to last year. *Gross profit rate of 55.3%, down approximately 810 basis points as compared to last year. The year-over-year decline is driven by approximately $80 million of higher freight costs, partially offset by higher average unit retail on lower promotions. *Operating expense, excluding other operating income, net, was up 5% compared to last year. Approximately half of the increase was due to the lapping of COVID-related rent abatements and payroll credits last year, and the other half due to an increase in marketing and digital fulfillment expenses. Operating expense as a percentage of sales increased to 56.9% from 56.2% last year. *Operating loss of $10 million and $6 million on a reported and adjusted non-GAAP basis, respectively, as compared to operating income of $57 million and $60 million last year, on a reported and adjusted non-GAAP basis, respectively.

Beginning Dec. 4, Walmart is expanding the benefit list of Walmart+. Just in time for the holidays, Walmart is removing the $35 shipping minimum for Walmart.com orders for its members. This new benefit paired with free unlimited deliveries of groceries and more from Walmart stores makes the retailer’s membership program even more comprehensive. “It feels like a life hack is needed now more than ever, and Walmart+ is here to help,” said Janey Whiteside, chief customer officer, Walmart. “No other membership allows customers across the country to get everything from gingerbread cookies and eggnog to holiday decorations and toys delivered for free as soon as the same day. Walmart+ is designed to make life easier – giving customers an option to not have to sacrifice on cost or convenience.” Walmart+ members will receive free next-day and two-day shipping on items shipped by Walmart no matter the basket total.