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.
Walmart reported earnings on Monday for the holiday quarter, failing to meet analysts’ expectations. Sales declined due to unrest in Chile, where protests have been causing disruptions in Walmart stores in the region impacting operating income by $110 million approximately. The company informed the Coronavirus outbreak has not impacted its financial forecast.
“The holiday season wasn’t as good as expected due to lower sales volumes and some pressure related to associate scheduling,” stated CFO Brett Biggs.
Highlights from Walmart’s quarterly earnings :
- An EPS of $1.38 was reported versus $1.43 expected.
- Revenue of $141.67 billion was reported versus $142.49 billion expected.
- Same-store sales increased by 1.9% in the U.S. vs. an expected growth of 2.3%.
- Net income of $4.14 billion was reported for the quarter ending Jan. 31, or $1.45 cents a share, in comparison to $3.69 billion, or $1.27 reported, a year ago.
- Revenue increased about 2.1% to $141.67 billion from $138.79 billion a year ago but fell short of expectations at $142.49 billion.
- E-commerce sales rose by 35% for the quarter, down from 41% in the prior quarter.
- Walmart is foreseeing e-commerce growth of roughly 30% for fiscal 2021. It expects earnings of $5.00 to $5.15 a share with analysts expecting earnings of $5.22 per share.
Walmart is set to discontinue its text-to-order e-commerce service, known as Jetblack due to the stagnant growth of the project. Also, Walmart sold its clothing start-up, ModCloth, as per reports. The company has also been experiencing shuffling among its executive ranks recently.
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
Stay Informed! Stay Competitive! Please join us at Vista Partners and receive our FREE email updates throughout the week and view our exclusive content and research.