Walmart Online Sales Are up by a Staggering 63 Percent Last Quarter

by Frankie Norman May 19, 2017, 8:22
Walmart Online Sales Are up by a Staggering 63 Percent Last Quarter

Online sales added 0.8 percentage points to the first quarter comparable sales gain.

Shares of Wal-Mart rose to $76.10 in pre-market trade. "Online grocery also continues to perform well, and we're on track to scale the offering to more stores this year in several countries, including the U.S. We're taking steps to save customers time as well as money". He noted that results have been volatile week to week since Christmas. That rise was supported in part by strong sales of groceries and household goods.

Cornell had said Target wants to return to more consistent low prices on essentials to deepen loyalty among shoppers, a shift from the temporary discounts it had been promoting. In the last 90 days, insiders have sold 15,585,041 shares of company stock worth $1,110,035,611. The lowest 12-month price target for the shares is $60.00, which would be decrease of about -20% of its current value. Finally, US Bancorp DE boosted its position in Wal-Mart Stores by 1.2% in the third quarter. But Cornell said Target is focusing on exclusive brands and the experience customers have in stores as well. Target said it launched a new ad campaign focused its convenient and low-price assortment of everyday items late in the first quarter.

DISAPPOINTING RESULTS: Ascena Retail Group sank 28.9 per cent after the retailer cut its forecast for its fiscal third quarter and full year, citing lagging customer traffic and other challenges. But Cornell found those efforts were not paying off.

The largest retailer in the USA - which has substantially ramped up its digital heavily in recent months - released first-quarter results today that showed significant e-commerce gains as well as modest year-over-year improvements in overall sales.

The numbers are a sign that Wal-Mart is making headway in its fight to be as dominant online as it is across the American landscape. And Cornell told reporters that Target is benefiting from other companies closing stores. Sales were $117.5 billion, down slightly from the consensus of $117.8 billion.

Amazon Dash is a similar concept, where customers can restock products by brands like Tide, Glade or Gatorade, with the push of a button. It will be expanded to customers in the Minneapolis area this summer.

Wal-Mart is aggressively trying to compete with Amazon's juggernaut Prime membership, scrapping a fee-based shipping program test earlier this year in favour of free, two-day shipping for online orders of its most popular items with a minimum purchase order of $35.

Earnings amounted to $1 a share in the period, which ended April 30.

Earnings, adjusted for pretax gains and to account for discontinued operations, came to $1.21 per share, well below the 91 cents per share that Wall Street had expected according to FactSet.

Net income fell 1.3 percent, to $3 billion, or $1.00 per diluted share, but topped forecasts for earnings per diluted share of 96 cents.

"Working capital initiatives continue to bear fruit, with year-over inventories down over $1 billion and payables up nearly $3.5 billion, and we also note debt balances are down over $3.5 billion year-over-year, which provides Walmart with additional financial flexibility as it continues with its multi-year investment program", O'Shea also said.


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