Summary by Futu AI
Walmart reported a 5.4% increase in net sales to $168 billion for Q3 2024, with operating income rising 8.2% to $6.7 billion. The gross profit margin improved to 24.2%, driven by strong sales in grocery and health and wellness, and eCommerce growth. The company declared a fiscal 2025 annual dividend of $0.83 per share, up from $0.76.Management attributed the performance to strategic pricing, higher-margin business growth, and increased membership income. The Walmart U.S. segment saw a 5.1% rise in comparable sales, while Sam's Club and Walmart International segments also posted gains. Operating expenses increased due to hurricane recovery costs and higher marketing expenses.Walmart anticipates continued challenges from inflation and supply chain disruptions but remains focused on growth through omni-channel strategies and productivity improvements. The company increased its free cash flow to $6.2 billion, supported by strong operating cash flows and strategic capital investments, including the acquisition of Vizio Holding Corp.
