Online sales boost Walmart’s earnings

Pandemic spending separates big box from traditional retailers.

Walmart’s sales soared for a second straight fiscal quarter. The retailer’s online sales nearly doubled in the fiscal second quarter, helped by an expansion of its online delivery services. Sales at U.S. locations opened at least a year jumped 9.3%, the company reported Tuesday.

With customers not going out to eat as much, they’re cooking at home, spurring sales of groceries.

Consumers had already begun to rely on Walmart and other essential retailers like Target and Amazon as lifelines for necessities during the start of the pandemic, sending Walmart’s online sales up 74% for the fiscal first quarter. That trend accelerated to 97% in the second quarter and broadened the gap between traditional retailers and big box operators like Walmart and Target.

With unemployment at high levels, Walmart’s ability to deliver lowpriced food, clothing and electronics strengthened its advantages.

Net income for Walmart Inc. reached $6.48 billion in the quarter, or $2.27 per share. Earnings, adjusted for one-time gains and costs, were $1.56 per share, easily outpacing Wall Street projections of $1.22, according to a survey by Zacks Investment Research. The retailer posted revenue of $137.74 billion, also exceeding expectations.

However, the $600-a-week federal check that had been sent to roughly 28 million laid-off workers is gone. Already, Walmart is feeling the effects of the expired benefits.

“As the benefits from stimulus wane towards the end of the quarter, we saw comp sales settle into a more normal range,” said CEO Doug McMillon.