I found various notable items in Walmart’s Q3 2019 management call transcript (pdf) dated November 15, 2018. (as well, there is Walmart’s press release of the Q3 results (pdf) and related presentation materials)
I view Walmart’s results and comments as particularly noteworthy given their retail prominence and focus on low prices. I have previously commented on their quarterly management call comments; these previous posts are found under the “paycheck to paycheck” tag.
Here are various excerpts that I find most notable:
comments from Brett Biggs, EVP & CFO, page 10, wrt Walmart U.S.:
Walmart U.S. delivered strong comp sales growth of 3.4 percent. We
started the quarter strong with a solid back-to-school season and finished
strong with solid sales of fall seasonal goods. Our omnichannel offering
continues to resonate with customers and drive momentum in this healthy
consumer environment. Keep in mind that we lapped last year’s comp
sales benefit of 30-50 basis points from hurricanes, with only a marginal
benefit from storms this year. On a two-year stacked basis, comp sales
increased 6.1 percent. Growth was strong across channels with store
traffic and ticket up 1.2 percent and 2.2 percent, respectively, while
eCommerce sales grew 43 percent and contributed approximately 140
basis points to the segment comp.
comments from Brett Biggs, EVP & CFO, page 11, wrt Walmart U.S.:
Walmart U.S. gross margin rate declined 28 basis points due
primarily to the pricing strategy, higher transportation expenses, and the
increasing mix of eCommerce growth, partially offset by the overlap from
last year’s hurricanes.
The Special Note summarizes my overall thoughts about our economic situation
SPX at 2701.58 as this post is written