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BENTONVILLE, Ark. — Walmart announced on Thursday that the company had a net income of $1.71 billion, or 58 cents a share, in its third quarter on revenue of $124.89 billion. Earnings were fueled by brisk e-commerce sales, as the company continues to acquire online brands in categories such as apparel and home goods while also expanding its grocery business. Walmart now offers a grocery pickup option at roughly 2,100 stores across the country and delivers to customers in about 600 locations.
Same-store sales in the United States climbed 3.4%. At Sam’s Club, comparable-store sales rose 3.2% on a 6.2% increase in traffic.
The company raised its forecast for full-year earnings and same-store sales in the U.S., citing expectations for a strong holiday season. Walmart now expects same-store sales in the U.S. to rise “at least” 3%, compared with a previous outlook of “about” 3%.
“We have momentum in the business as we execute our plan and benefit from a favorable economic environment in the U.S.,” chief executive officer Doug McMillon said in a statement.
Revenue rose 1.4% from a year ago, the company said. Excluding impacts from currency, revenue was $126.1 billion.
Operating income was $3.9 billion, compared to $3.8 billion a year ago.
Walmart International sales fell 2.6% to $28.8 billion, partly due to the sale of a majority of its Brazilian business. The company said same-store sales were positive in nine out of 10 markets where it operates overseas.
Online sales were up 43% during the third quarter, and Walmart executives said they expect to meet their goal of 40% e-commerce sales growth for the full year. The company has focused on expanding its merchandise assortment online, in part through acquisitions.
“We have an opportunity to improve the margin mix in this business, and we’ll do this by expanding the tail of the [online] assortment through first-party items and marketplace,” McMillon said.
