LIVE TV DownloadNews18 App
News18 English
»
2-min read

Walmart Beats all Around, with E-commerce Sales Rebounding

Online sales rose 33 per cent in the first quarter, a strong showing following a disappointing 23 per cent increase in the final quarter of last year. Wall Street punished the company for the end-of-year e-commerce performance, sending company shares plunging more than 10 per cent. It was the biggest single-day percentage drop in 30 years.

Associated Press

Updated:May 17, 2018, 7:02 PM IST
facebookTwittergoogleskypewhatsapp
Walmart Beats all Around, with E-commerce Sales Rebounding
A man pushes shopping trolleys at a Walmart India's Best Price Modern Wholesale store in Jammu May 8, 2018. (Image: Reuters)
Loading...
New York: Walmart is reporting better-than-expected profit and revenue for the first quarter with rebounding e-commerce sales.

Revenue at Walmart stores opened at least a year rose 2.1 per cent, the company said on Thursday, also surprising Wall Street.

It's an encouraging report from Walmart, which like other retailers is looking at new ways to compete in light of swiftly changing shopping habits and intense competition from Amazon. Walmart, while spending more on its workers to improve service, is building fewer big stores, and its focus is solidly online.

Since buying Jet.com for more than $3 billion nearly two years ago, Walmart has buttressed its presence online, acquired brands like Bonobos and ModCloth, and vastly expanded the number of goods its sells from its site.

It's also strengthening delivery to make shopping at Walmart even easier. In March, Walmart began expanding its same-day delivery service to more than 40 percent of U.S. households, or 100 metro areas by year end.

Walmart is reworking its website with a focus on fashion and home furnishings. It has teamed up with Lord & Taylor to create dedicated space on its site, which will be launched in the next few weeks.

Online sales rose 33 per cent in the first quarter, a strong showing following a disappointing 23 per cent increase in the final quarter of last year. Wall Street punished the company for the end-of-year e-commerce performance, sending company shares plunging more than 10 per cent. It was the biggest single-day percentage drop in 30 years.

Still, digital sales are below the 40 percent growth that Walmart is expecting for this year. Walmart has a long way to get even close to Amazon's online dominance. Amazon.com Inc. has leveraged its Prime membership program into intense loyalty from customers. Amazon recently raised its annual fee for membership to $119, from $99. And it's stepped into Walmart's turf, no longer content with only online sales.

After spending $14 billion to acquire Whole Foods last summer, Amazon announced two-hour delivery from the grocery chain for its members. It also said that Prime members will get an additional 10 percent on sale items and exclusive deals on certain groceries at Whole Food stores. Those expanded benefits go nationwide this summer.

While it fights off rivals at home, the world's largest retailer is expanding elsewhere, with new moves into India and China.

This month, it acquired a controlling stake in Flipkart, India's largest online retailer. The $16 billion deal is Walmart's biggest acquisition yet. It is selling its British unit, Asda, which has been struggling with intense competition from German no-frills discounters Aldi and Lidl.

Walmart posted a first-quarter profit of $2.13 billion on Thursday, or 72 cents per share. Earnings, adjusted for non-recurring costs, were $1.14 per share, which is 2 cents better than industry analysts were expecting, according to a survey by Zacks Investment Research.

That compares with $3.04 billion, or $1 per share, in the year ago quarter The Bentonville, Arkansas, company's revenue rose 4.4 percent to $122.69 billion, beating projections for $120.08 billion.

Shares of Walmart Inc. rose almost 3 percent before the opening bell.

Catch the biggest newsmakers and the biggest newsbreaks on CNN-News18, the only news destination. Keep watching CNN-News18 at just 50 paise per month. Contact your cable/DTH operator now!

*Rental/capacity fee of Rs. 130/- as charged by cable/DTH operator may apply. **GST extra.
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Sun Pharma 390.75 -8.39
Reliance 1,184.35 4.40
Jet Airways 281.20 -1.44
Yes Bank 198.60 -1.44
HUL 1,744.10 -0.42
Company Price Change %Gain
Sun Pharma 390.75 -8.52
Reliance 1,182.95 4.34
ICICI Bank 371.90 -0.39
Jet Airways 281.35 -1.21
Yes Bank 198.25 -1.59
Top Gainers
Company Price Change %Gain
Reliance 1,184.35 4.40
Wipro 346.15 3.21
Kotak Mahindra 1,240.20 1.66
Hindalco 208.80 1.36
Adani Ports 399.30 1.22
Company Price Change %Gain
Reliance 1,182.95 4.34
Kotak Mahindra 1,237.35 1.41
HCL Tech 964.50 1.02
Asian Paints 1,401.30 0.85
ONGC 146.25 0.79
Top Losers
Company Price Change %Gain
Sun Pharma 390.75 -8.39
Bharti Airtel 311.15 -6.29
GAIL 322.15 -3.08
Larsen 1,317.90 -2.09
HPCL 239.50 -1.92
Company Price Change %Gain
Sun Pharma 390.75 -8.52
Bharti Airtel 310.95 -6.42
Larsen 1,318.25 -2.07
Axis Bank 664.30 -1.77
Yes Bank 198.25 -1.59

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results