Walmart released strong third-quarter fiscal 2025 earnings, showing the retail giant is not slowing down. Total revenue climbed to $169.6 billion, above analysts’ expectations of $167.7 billion. Walmart’s net income reached $4.6 billion, up from $453 million year over year.
Comparable sales, a measure of same-store sales, surged 5.3%. Walmart shoppers, both online and in-store, spent more during the quarter. The average order total increased by 2.1%, and the number of transactions went up by 3.1% compared to Q3 2024.
The growing popularity of curbside pickup and home delivery orders helped Walmart’s online shopping segment grow 22% in the U.S.
“In the U.S., in-store volumes grew, pickup from store grew faster, and delivery from store grew even faster than that,” said Walmart CEO Doug McMillon.
To get online orders to their doors within three hours, Walmart shoppers are willing to pay extra. In almost one-third of U.S. orders over the last two quarters, customers requested a shorter delivery window and paid an additional fee to get it.
In an interview with CNBC, CFO John David Rainey said the e-commerce division will eventually turn a profit. He noted how the incremental fees customers opt to pay for convenience are offsetting the company’s delivery expenses.
Walmart Holiday Shopping and Annual Outlook
According to Rainey, sales of general merchandise, excluding the grocery department, increased in the last two quarters. Even with prices on essentials, like food, still relatively high, customers increased purchases of nice-to-have items like TVs and Apple AirPods.
With such a positive Q3 earnings report, Walmart released an improved outlook for the year. The company predicts a 4.8%-5.1% growth in net sales, up from an earlier projection of 3.75%-4.75%.
Walmart jump-started holiday shopping early this year with a Holiday Deals event in October. The event reduced prices on many gift items, such as toys, electronics, and clothes. Walmart also cut the price of its Plus annual membership in half, just in time for the holidays.
For all retailers, the 2024 holiday shopping season is encouraging. Consumer spending in November and December could be between 2.5% and 3.5% higher this year than last year, according to the National Retail Federation. Holiday shoppers are projected to spend between $979.5 billion and $989 billion.
