Walmart U.S. eCommerce sales soar 79%; Customer behaviors will largely persist - CEO
Walmart earnings soar as online shopping boosts profit, sends stock to new record
Walmart, the world’s largest retailer, reported stronger-than-expected third-quarter earnings results on Tuesday, bolstered by online sales from consumers spending more time at home.
Here were the main numbers compared to Bloomberg consensus forecasts:
Revenue: $134.7 billion vs. expectations of $132.42 billion
Adjusted EPS: $1.34 vs. expectations of $1.18
Walmart U.S. comp-store sales (excluding gas): 6.4% vs. expectations of 3.3%
Walmart U.S. e-commerce sales: up 79%
“This was another strong quarter on the top and bottom line,” CEO Doug McMillon said in a statement. “We think these new customer behaviors will largely persist, and we’re well-positioned to serve customers with the value and experience they’re looking for.”
For Q3 FY21, Walmart U.S. comp sales increased 6.4%, excluding fuel, and Walmart U.S. eCommerce sales grew by 79%. https://t.co/b5Zwz0GtXi $WMT pic.twitter.com/zS9dZRQGZ5
— Walmart Inc. (@WalmartInc) November 17, 2020
Walmart saw its total revenue growth 5.2% from the year-ago period to $134.7 billion, while adjusted earnings per share climbed 15.5% from a year ago to $1.34.
The e-commerce trend that’s come to define the COVID-19 era continued to provide a boost to the big-box retailer — and are largely expected to continue as new infections skyrocket, threatening new lockdowns for the holiday season. E-commerce, which jumped 79% from the same period a year ago, contributed approximately 570 basis points to U.S. comparable sales.
The company’s closely-followed comparable sales in the U.S. jumped 6.4% in the quarter, while comparable transactions dipped 14.2%, offset by comparable tickets growth of 24%. Walmart noted that shoppers “continued to consolidate store shopping trips with significantly larger average baskets and shifted more purchases to eCommerce.”
The general merchandise category posted high-single-digit sales growth, driven by home, electronics, toys, and sporting goods. The company saw “softer results” in back-to-school categories.
Walmart’s grocery category posted mid-single-digit sales growth with “broad-based strength across most categories” and consumables sales growth “led by strength in household chemicals and paper products.”
Walmart’s grocery pickup and delivery posted record-high sales volumes. At the end of the quarter, Walmart offered its online grocery pickup service at 3,600 locations and same-day delivery at approximately 2,900 stores. Walmart operates more than 4,700 stores in the U.S.
