Walmart online sales surge, earnings beat expectations
NEW YORK: US retail giant Walmart saw quarterly profits take a hit but earnings beat analysts’ expectations and total sales rose amid the growth of its online business, the company said.
Net income was down US$905 million from the same period last year to US$2.134 billion.
But the key earnings per share measure was US$1.14, two cents higher than expected.
And net sales, at US$121.6 billion, were up 4.4 per cent over the same period last year – more than US$1 billion higher than expectations.
Walmart, which is trying to compete with online giant Amazon, saw US comparable store sales rise 2.1 per cent and customer traffic increase 0.8 per cent, although the unseasonably cold weather hurt sales in the United States.
US online sales surged 33 per cent compared to the same period of the prior year and added a full point to overall sales growth. “We are changing from within to be faster and more digital, while shaping our portfolio of businesses for the future,” Walmart chief Doug McMillon said in a statement.
The company’s chief of e-commerce, Marc Lore, told reporters the chain was on track to meet its expectations for 40 per cent growth in online sales this year.
“We’re playing offense,” he said in a conference call.
He noted the company was beefing up jet.com to focus on more affluent millennials in major US cities where Walmart has lower penetration, which includes “a full range of Apple products.”
The retailer also is pushing its online grocery sales, which figure more prominently on the store’s homepage, and 800 stores will have delivery this year.
The company also added a partnership with upscale department store chain Lord & Taylor to its offerings which will bring more brands to its customers.