StockTop News

Walmart’s same-store sales rise 10%, online revenues surge

2 Mins read
imageStock Markets6 hours ago (May 19, 2020 08:55AM ET)

(C) Reuters. A person walks outside a Wal-Mart store in Mexico City

By Aishwarya Venugopal

(Reuters) – Walmart Inc (N:WMT) beat Wall Street expectations with its quarterly revenue and earnings on Tuesday and reported record U.S. online sales as stockpiling drove consumers to its stores and website during the coronavirus pandemic, sending its shares up 3%.

The world’s largest brick-and-mortar retailer, like many other essential businesses, has seen a surge in demand late in March and early in April as “shelter-in-place” orders made consumers stock up on staples while limiting their trips to the grocers.

However, the company pulled its forecast for the full-year due to the uncertainty to its business caused by the pandemic.

Walmart’s online business, which rose 74% in the first-quarter, benefited from the retailer’s investments in store pick-up and delivery services. It said the strength of its own online operation made it decide to discontinue, the online start-up it acquired in 2016 for $3.3 billion.

The business was undergoing an overhaul last year by integrating its retail, technology, marketing, analytics and product teams with Walmart’s own online business.

The company added that grocery pickup and delivery for food and other consumables reached record sales volumes and also saw high demand for electronics, toys and sporting goods in the quarter.

Overall, sales at U.S. stores open at least a year rose 10%, excluding fuel, in the first quarter ended April 30. Analysts had expected a gain of 8.8%, according to IBES data from Refinitiv.

Walmart has also been ramping up hiring, temporarily increasing wages and spending more on the maintenance of its stores and fulfillment centers as frustrations mount among U.S. warehouse, delivery and retail workers over concerns about their safety and pay.

Operating margins fell 62 basis points to 20.5% in the quarter as Walmart said it incurred additional costs related to pandemic of nearly $900 million.

Still, operating income rose 5.6% to $5.22 billion in the quarter ended April 30 with adjusted earnings per share at $1.18, beating Wall Street expectations of $1.12. (https://

“The reduction in margins, especially when considering coronavirus-oriented spend and the explosion in higher-cost online sales, is actually fairly benign, indicating that Walmart’s online business was able to largely handle this growth surge within its existing capability,” Moody’s (NYSE:MCO) analyst Charlie O’Shea said.

Total revenue rose 8.6% to $134.6 billion, beating analysts’ estimates for $132.79 billion.

Walmart sales surge at stores and online on coronavirus-led demand

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.