Walmart is one of the retailers households turn
to make their food budget stretch further.”
Food sales rose nearly 10% during the quarter,
reflecting strong market share gains and low to
mid-single digit inflation.
Walmart executives said they’re seeing
beneficial gaps in pricing for groceries
compared with rivals and that those gaps are
wider now than before the pandemic began.
Walmart was not immune from the current
inflationary pressures, however, and said that its
consolidated gross profit rate took a hit primarily
due to increased supply chain costs, among
other issues.
“We’re off to a good start for the holiday season
and in a good position to continue delivering
strong results,” Chief Financial Officer Brett Biggs
said in a conference call. “ Despite the various
macro and industry challenges our inventory
position is good. Stores and fulfillment centers
are well staffed and our price position remains
strong. Customers should expect to find the
items they want.”
The U.S. reported that retail sales climbed a
seasonally adjusted 1.7% in October from the
previous month. That’s the biggest gain since
March, though some of that increase can be
attributed to rising prices.
Walmart posted a profit of $3.1 billion, or $1.11
per share, during the three-month period
ended Oct. 31. Adjusted for one-time gains and
losses, per share earnings were $1.45. That’s
a nickel better than Wall Street had expected,
according to a survey a survey of industry
analysts by FactSet.