Walmart earnings top estimates, fueled by strong grocery sales and back-to-school spending

On Tuesday, Walmart reported second-quarter earnings that exceeded Wall Street expectations as the retail giant began a strong return season from school by acquiring groceries

Shares fell about 1% in pre-market trading.

The concession also boosted its one-year forecast and said it expects earnings per share to be between $ 6.20 and $ 6.35. Walmart said it expects sales of the same store in the U.S. to grow between 5% and 6%, excluding fuel.

In an interview with CNBC, Chief Financial Officer Brett Biggs said customers flocked to stores for items such as luggage, party supplies and clothing when they “got out of hibernation.” He also said that families buy backpacks and belongings for the class.

Biggs said the company was closely monitoring the delta option as Covid’s incidents escalated, but did not see a change in customers’ shopping patterns.

“Wearing the mask has started again, but supplies are running out – what we saw in March and April last year [2020] – we haven’t actually seen it again,” he said.

CEO Doug McMillon said in a news release that the company has gained more market share in the grocery store, one of its core businesses. By adding thousands of online retailers to the third-party market, it is making progress in new areas, and Walmart said it nearly doubled U.S. ad sales in the quarter compared to a year ago.

According to refinitive consensus estimates, the company’s data for the second quarter, which ended on July 31, is as follows:

  • Earnings per share: $ 1.78 adjusted and $ 1.57 expected
  • Revenue: $ 141.05 billion and expected $ 137.17 billion
See also  Floyd Mayweather Jr. reveals how much he made for Logan Paul 'fake fight'

Walmart is surpassing the quarter of a year ago when it increased sales because promotional controls limited sales hours, and the customer disrupted Covid-19 purchases. According to the company, which tracked sales growth at Walmart and its competitors in the same store, the big-box retailer lost market share to its competitors in a smaller or more convenient location. Walmart also switched to e-commerce.

Walmart earnings top estimates, fueled by strong grocery sales and back-to-school spending:

Over the past two quarters, discounters have regained market share at the grocery store as consumers return to their old habits. Customers make more shopping trips. Walmart U.S. transactions rose 6.1%, but the average ticket fell about 1%.

Walmart said net income fell to $ 4.28 billion from $ 6.48 billion a year ago, or $ 1.52 per share. Excluding items, the company earned $ 1.78 per share. According to Refinitive, analysts expected Walmart to earn $ 1.57 per share.

Walmart reported the highest quarterly revenue for a quarter of the holiday season. Total revenue rose 2.4 percent from $ 137.74 billion a year earlier to $ 141.05 billion, beating Wall Street’s $ 137.17 billion expectations.

According to a StreetAccount survey, Walmart’s same-store sales in the U.S. rose 5.2% from the 3.3% growth analysts had expected. The seller said that sales of the same stores have increased by 14.5% in the last two years. He said US e-commerce sales had doubled in the same period, with the digital figure growing at an annual rate of 6%.

For Walmart’s subsidiary Sam’s Club, sales at the same store, excluding fuel, rose 7.7 percent – more than analysts had expected 3.7 percent.

See also  Historic Lake View East Building Moving for CTA Modernization Project

The company said it expects sales of the same store at Sam’s Club to grow from 7.5% to 8.5% this year, excluding fuel and tobacco.

Walmart shares followed other pandemic beneficiaries in the retail industry. As of Monday, Walmart shares were up about 5% this year compared to Target and Kroger, which rose 49% and 37%, respectively, in 2021. It lags behind the S&P 500 by 33%.

Get connected with ReportingHOur

News via@ CNBC

Travis Barker & Kourtney Kardashian NSFW Photos Trump And Melania Tested Positive for Corona Virus Lady Gaga Wardrobe Malfunction Apple Will launch iPhone 12 In October 2020
%d bloggers like this: