Walmart Touts Growing Momentum As Q3 Earnings Surge To $3.3 Bn

Retail giant Walmart saw profits surge in the latest quarter on an explosion in online sales and are looking to build on that heading into the critical holiday shopping season, according to results released Thursday.

Company executives touted the growing momentum, especially as it ramps up ecommerce to expand beyond popular grocery deliveries, and branches into other areas like health care.

But the international outlook for the world's largest retailer is more mixed, including the uncertainty created by President Donald Trump's aggressive tariff policy.

"The sales environment in the US continues to be positive, while internationally its softer and we're responding appropriately," Walmart chief Doug McMillon said in a statement.

The company's net income jumped more than 92 percent to nearly $3.3 billion in the three months ended October 31 compared to the same quarter a year earlier, the company reported.

Total revenue rose 2.5 percent or $3.1 billion, to $128 billion.

This resulted in adjusted earnings per share, a key US benchmark, of $1.16, well above the median estimate of $1.09 expected by analysts.

The company now projects the full year results to be "up slightly" -- a modest improvement over its previous outlook.

US sales rose at Walmart and Sam's Club, despite some impact from reduced tobacco sales,

US ecommerce sales surged 41 percent, including a big jump in online grocery sales.

McMillon pointed to good customer traffic in US stores, but said the retailer needs to do a better job selling general merchandise online

"Looking ahead, we're prepared for a good holiday season. Our integrated offering with stores and eCommerce delivers value and convenience for our customers," he said.

Newly-installed Walmart US President and CEO John Furner said the domestic business "has got a lot of momentum."

The main priority in the short term is to "maintain the momentum through holiday season," he told reporters in a conference call.

With the success of online sales, he said the company is experimenting with news systems and technology to "remove friction" and streamline the experience, including equipment to help store employees to pick products to fill orders more quickly.

But ecommerce chief Marc Lore said the company has "no plans" to change its grocery delivery fees, after Amazon ditched its $15 monthly charge.

Walmart also opened its first health center and plans to open a second soon.

"From there we'll have a lot to learn and decide as we move forward," he said. "Walmart playing a role in providing health care services seems like a great idea."

Overseas, the retailer's results were more mixed, with a solid performance in China and at Walmex in Mexico.

The chain marked the first anniversary of the acquisition of Flipkart, which boosted international sales, and the site had record sales on the Big Billion Days event in early October.

But sales in Britain were soft due to concerns over Brexit, while business in Chile has been impacted by civil unrest there forcing many stores to close.

While the results did not quantify the impact of tariffs on sales, Walmart Chief Financial Officer Brett Biggs said the company is "continuing to monitor the ongoing tariff discussions and are hopeful that an overarching long-term agreement can be reached."

Trump on Twitter gave his own assessment: "Walmart announces great numbers. No impact from Tariffs (which are contributing $Billions to our Treasury)."