Walmart Inc (WMT) released quarter earnings this week, beating Wall Street’s estimates. The retailer witnessed sales surge as consumers stocked up on food and essential supplies amid COVID-19 imposed lockdown. The company experienced a surge in demand late in March and early in April like many other essential businesses.
“Toward the end of the quarter, another phase emerged, call it relief spending. He further informed that the sales have risen for categories for products needed for DIY projects, such as bandanas and sewing machines, and bicycles were also in greater demand,” stated Chief Executive Officer Doug McMillon
Key earnings figures & highlights:
- Walmart’s online business increased by 74% in the first quarter ending April 30.
- Total revenue rose 8.6% to $134.6 billion beating analysts’ estimates.
- Operating income rose 5.6% to $5.22 billion in the quarter.
- Adjusted earnings per share stood at $1.18, beating Wall Street expectations of $1.12.
- Retailer’s additional costs related to the pandemic reached nearly $900 million pushing operating margins down 62 basis points to 20.5% in the quarter.
- Walmart to discontinue Jet.com, the online start-up it bought in 2016 for $3.3 billion due to the worry brought by the coronavirus in its investment and cost savings.
The company suspended its forecast for the full year due to the uncertainty caused by the pandemic.
Walmart Stores, Inc. (WMT) is a worldwide retailer that operates in various formats. The three segments of the company include Walmart U.S., Walmart International, and Sam’s Club. The company is comprised of discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, cash and carry stores, home improvement stores, specialty electronics stores, apparel stores, drug stores, convenience stores, and membership-only warehouse clubs; and retail Websites. To learn more about Walmart (WMT) and to continue to track its progress please visit the Vista Partners Walmart Coverage Page.
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