Customers shop at Walmart on May 19, 2020 in Chicago, Illinois.
Scott Olson | Getty Images
Walmart announced third-quarter earnings on Tuesday that beat Wall Street expectations as customers continue to shop online resulting in US e-commerce sales up 79%.
The discount said customers are embracing the new shopping methods they adopted during the global health crisis and as the holiday shopping season begins. Instead of browsing the aisles of stores, many of them ship purchases to their homes, deliver groceries to their doors or pick up purchases online from the sidewalk.
Walmart did not offer an outlook, but CEO Doug Macmillon said the popularity of online shopping services was not fading.
“We believe these new customer behaviors will largely continue and we are well positioned to serve clients with the value and experience they are looking for,” Macmillon said in a press release.
Walmart shares rose about 1% in pre-market trading.
This is what the company reported for the third quarter ending on October 31:
- Earnings per share: $ 1.34, revised versus $ 1.18 expected, according to Refinitiv’s unanimous estimate
- Revenue: $ 134.7 billion, compared to $ 132.2 billion, according to Refinitiv estimates
- Same-store sales in the US: up 6.4% versus the 3.9% gain predicted by the StreetAccount survey
In the third quarter, Walmart reported net income of $ 5.14 billion, or $ 1.80 per share, from $ 3.29 billion, or $ 1.15 per share, a year earlier. Excluding items, Walmart earned $ 1.34 per share. Analysts had expected Walmart to earn $ 1.18 a share, according to Refinitiv.
Total revenue grew 5.2% to $ 134.7 billion from $ 128.0 billion the year before, surpassing that Wall Street forecast $ 132.2 billion.
Walmart’s US store sales grew 6.4%, up from the 3.9% increase that the StreetAccount survey predicted.
Walmart has been a beneficiary of the stay-at-home trend during the pandemic – a trend that has continued into the last quarter, even without the support of government stimulus dollars. Since spring, Americans have turned to their stores and website to buy groceries, cleaning supplies and things to pass the time, from puzzles to bikes.
In the coming months, Walmart will face new challenges. Coronavirus cases and hospitalizations are increasing across the country during the holiday shopping season. Starting on Saturday, Walmart has said it will Resume counting and restrict number of clients In store to ensure that it does not exceed the capacity limits. Some grocery stores, including Kroger, Wegmans, and Publix, have restored purchase limits on toilet paper, spray sterilization, and hand sanitizer.
Like other retailers, Walmart started holiday sales early due to the pandemic and it has Split Black Friday into several online stores and events. Will be his stores Closed on Thanksgiving DayThe day that was the start of the shopping season in previous years.
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