Walmart E-Commerce Sales Surge 74% - Tops
May 19, 2020
reported earnings per share of $1.18, adjusted
with revenue of $134.62 billion. The Street
was only looking for earnings $1.12 per
share with revenue of $132.80 billion. The
firm's e-commerce sales in the U.S. rose
74%, and same-store sales were up 10% in the
Doug McMillon, President and CEO, Walmart
said, “More than ever, the news this quarter
is our amazing associates. They are rising
to the challenge to serve our customers and
our communities. I’m proud of how they’re
adapting and performing. Our omnichannel
strategy, enabling customers to shop in
seamless, flexible ways, is built for
serving the needs of customers during this
crisis and in the future.”
“The company’s approach to leadership
through shared value has never been more
evident than it is now. From associates to
customers to communities, shareholders and
more, Walmart is working hard to make a
difference,” added McMillon.
Fiscal 2021 full year guidance
Due to unprecedented variability in the
macro environment brought on by COVID-19,
the company is withdrawing financial
guidance for fiscal year 2021.
“The decision to withdraw guidance
reflects significant uncertainty around
several key external variables and their
potential impact on our business and the
global economy, including: the duration and
intensity of the COVID-19 health crisis
globally, the length and impact of
stay-at-home orders, the scale and duration
of economic stimulus, employment trends and
consumer confidence,” said Brett Biggs,
Walmart Inc. chief financial officer. “Our
fundamentals are strong, and our financial
position is excellent. Customers trust us to
deliver on our brand promise, and I’m
confident in our ability to perform well in
most any environment. While the short-term
environment will be challenging, we’re
positioned well for long-term success in an
increasingly omni world.” added Biggs.
company’s net sales and operating
results were significantly affected
by the outbreak of COVID-19.
Unprecedented demand for products
across multiple categories led to
strong top-line results. Certain
incremental costs negatively
affected operating income, including
costs associated with enhanced wages
and benefits as well as safety and
Total revenue was $134.6 billion, an
increase of $10.7 billion, or 8.6%.
Excluding currency, total revenue
would have increased 9.7% to reach
Walmart U.S. comp sales increased
10.0%, led by strength in food,
consumables, health & wellness and
some general merchandise categories.
Walmart U.S. eCommerce sales grew
74% with strong results for grocery
pickup and delivery services,
walmart.com and marketplace.
to continued strength of the
Walmart.com brand, the company will
discontinue Jet.com. The acquisition
of Jet.com nearly four years ago was
critical to accelerating our omni
Sam’s Club comp sales increased
12.0%, led by in-club transactions.
eCommerce sales grew 40%. Reduced
tobacco sales negatively affected
comp sales by approximately 410
sales at Walmart International were
$29.8 billion, an increase of 3.4%.
Changes in currency rates negatively
affected net sales by approximately
$1.3 billion. As a reminder, with
the exception of Canada, all other
international markets report on a
one month lag.
Consolidated gross profit rate
declined 66 basis points primarily
as a result of the carryover of
investments in price from last year,
a shift in the sales mix to
lower-margin categories and channels
as well as some markdowns in general
Consolidated operating expenses
leveraged 62 basis points despite
incremental costs related to
Consolidated operating income was
$5.2 billion, an increase of 5.6%
and included lower losses in Walmart
U.S. eCommerce compared to Q1 FY20.
Excluding currency, operating income
would have increased 6.6%.
Adjusted EPS excludes only the
effects of an unrealized gain of
$0.22, net of tax, on the company’s
equity investment in JD.com.