WM

Walmart Inc. stock research

Oct 31, 2023

FY2024 Q3

Walmart (WMT) Gross Margin — Quarter Ended Oct 31, 2023

Revenue, gross profit, and cost of revenue all decreased slightly from the prior quarter, leaving gross margin unchanged. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin improved.

Gross margin takeaway

Quarter ended Oct 31, 2023 · FY2024 Q3

Revenue, gross profit, and cost of revenue all decreased slightly from the prior quarter, leaving gross margin unchanged. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin improved.

  • Gross margin remained stable sequentially at the same level, despite a small decline in revenue, as cost of revenue decreased proportionally.
  • Relative to the prior quarter, revenue and gross profit were slightly lower, but gross margin was unchanged. Year-over-year, all metrics improved, with gross margin rising.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

24.0%

Gross profit

$38.3B

Revenue

$159.4B

Cost of revenue

$121.2B

Quarter-over-quarter change

+0.0 pts

Year-over-year change

+0.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jan 31, 2023$162.7B$37.3B$125.4B22.9%
Apr 30, 2023$151.0B$35.7B$115.3B23.7%
Jul 31, 2023$160.3B$38.4B$121.8B24.0%
Oct 31, 2023$159.4B$38.3B$121.2B24.0%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jul 31, 2023

+0.0 pts

Year-over-year change

Oct 31, 2022

+0.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross margin remained stable sequentially at the same level, despite a small decline in revenue, as cost of revenue decreased proportionally.

Relative to the prior quarter, revenue and gross profit were slightly lower, but gross margin was unchanged. Year-over-year, all metrics improved, with gross margin rising.

Monitor cost of revenue trends relative to revenue to see if the stable gross margin can be maintained.

WMT Gross Margin — Quarter Ended Oct 31, 2023