Walmart sales top expectations as shoppers continue to load up

Walmart sales surged past estimates as consumers continue to flock to the essential retailer for carts full of groceries, pharmacy items and at-home entertainment while the virus rages on.

U.S. comparable sales at Walmart stores climbed 6.4% when excluding fuel, beating estimates for a 3.8% increase, with online demand soaring. Despite the added costs of stocking all those goods and hiring more workers, Walmart’s gross margin added 50 basis points, or 0.5 percentage point, thanks to lower operating expenses and covid-19-related costs.

“Customers are resilient, and they certainly continue to shop,” Chief Financial Officer Brett Biggs said in an interview. With the company expanding operating hours and a delayed backto-school shopping season gaining steam, “momentum really picked up through the quarter.”

The results at the world’s largest retailer offer investors fresh insight on consumer behavior heading into the critical holiday season. Shoppers are still stocking up, eight months into the covid-19 pandemic. Transactions fell 14% during the quarter at Walmart’s U.S. division, while the average purchase surged 24% — meaning customers are consistently buying more every time they place an order.