Walmart: Second Quarter Earnings Soar
The well-known American trade achieves great figures led by an increase of almost 100% in e-commerce
Walmart, the world's largest retailer, reported that second quarter earnings results were better than expected. The company is driven by online sales that shot up 97% during the months of April, May and June.
It should be remembered that the crisis caused by the coronavirus prompted consumers to turn en masse to e-commerce to meet their needs.
Main numbers compared with Bloomberg's forecasts:
- Revenue: $137.7 billion versus expectations of $135.6 billion.
- Adjusted EPS: $1.56 versus expectations of $1.24
- Walmart store sales in the U.S. (excluding gas): 9.3% versus expectations of 5.3%.
- Walmart U.S. e-commerce sales: 97% increase.
Walmart shares, which closed at $135.60 on Monday, rose more than 6% in the pre-market before paring gains. "I want to give a big thank you to our associates for their tireless efforts during these unprecedented times," said CEO Doug McMillon.
"We also appreciate the confidence of our customers. We remain focused on serving them well now and expanding our global skill set to serve them well in the future," added the executive. The company's comparable store sales in the U.S. were up 9.3% in the quarter, "led by strength in general merchandise and food. Online grocery pickup and delivery "continued to experience record sales volumes.
During the quarter, Walmart'r's revenue increased 5.6%, or $7.4 billion, over the same quarter last year, benefiting from its status as a core business that remained open during the darkest days of COVID-19's closing.
Walmart also noted that sales, especially in the general merchandise category, were boosted by government stimulus spending, especially early in the quarter. Congress and the White House are currently at odds over a new stimulus package that is expected to exceed $1 trillion, and will likely extend additional unemployment benefits.
"As stimulus funds were reduced, sales began to normalize, but July purchases still grew by more than 4 percent," the company said.