• by Sarah Mahoney  @mahoney_sarah, November 19, 2024

Walmart released impressive third-quarter results, posting strong revenue gains throughout the organization. Grocery sales continued to grow, as did spending from upper-income consumers. However, lower-income shoppers also demonstrated remarkable resilience, and the company is finally seeing positive growth in general merchandise areas, including home and hardlines.

Global ad sales gained 28%, including 26% for Walmart Connect in the U.S., driven by marketplace sellers.

And global ecommerce revenue gained 27%.

The rosy results led the Bentonville, Arkansas-based company to increase the forecast for fiscal 2025, and it now expects net sales to climb between 4.8% and 5.1%.

For the third quarter, consolidated revenue climbed 5.5% to $169.6 billion from $160.8 billion in the prior year's comparable period. Operating income rose 8.2% to $6.7 billion, up from $6.2 billion. Both top and bottom-line results beat expectations.

The company says sales and market share gains came from both more and larger transactions, with people of all income levels responding to both value and conveniences.

And while the company has excelled in recent quarters due to dominance in grocery sales, Walmart says general merchandise is moving into growth mode, rising in the low single digits. General merchandise categories that did best include home, tech toys, seasonal decor, and back-to-college and Halloween merchandise.

In a conference call webcast for investors, Walmart chief executive officer Doug McMillon said that households earning more than $100,000 made up 75% of share gains in the U.S., with brisk growth in curbside pickup and delivery. And despite the port strike and multiple storms, “the changes we've been working on for years are continuing to bear fruit, and we are well positioned to serve people how they want to be served.”

Company execs also said that in its retail media platform, ongoing tests show customers are receptive to ads, “especially where ads help customers discover relevant items that are trending, helping them navigate and compare choices.”