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Retail giant Wal-Mart on Tuesday reported better than expected third-quarter earnings and reiterated for Q4. U.S. same-store sales rose 6.4%, continuing near 10 years highs, e-commerce sales jumped 79% as stay at home shoppers grew and $WMT continued to inch into $AMZN's space.

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Walmart has been acquiring e-commerce firms in it's battle with Amazon. $WMT has added Jet.com, Shoebuy, Moosejaw, ModCloth and Bonobos. Target as also been growing it's e-commerce segment and reports next week.

Walmart Inc NYSE: WMT: Reported Earnings Before Open Tuesday

 $1.34 Beat $1.18 EPS and $134.7B Missed $132.2 billion forecast in revenue 

Earnings

Walmart Inc. (WMT) reported income for the fiscal third quarter ended Oct. 31 of net income of $5.14 billion, earnings per share of $1.34, adjusted vs. $1.18 expected, according to Refinitiv’s consensus estimates. Walmart reported $1.80 per share, from $3.29 billion, or $1.15 a share, a year earlier before excluding items. Revenue was $134.7 billion vs. $132.2 billion expected by Refinitiv estimates U.S. same-store sales: up 6.4% vs. gain of 3.9% expected by StreetAccount survey

The company said Covid-19 added about $600 million in incremental expenses in the third quarter, but were partially offset by a non-cash impairment charge in the third quarter of last year.

Walmart Inc NYSE: WMT

Market Reaction - $152.20 -$0.19 (-0.12%)

Highlights

Walmart Chief Financial Officer Brett Biggs said the shift in purchasing patterns at the start of the pandemic amounted to “three to five years of acceleration in e-commerce, really in a period of weeks and months.” But, he added, “people are still going to want to stop and shop at stores longer term so we like the combination of those assets.”

  • Walmart subsidiary, Sam’s Club same-store sales increased about 11%, excluding fuel, and its e-commerce sales jumped 41%.
  • Walmart’s international business grew, but at a slower rate. Net sales in the third quarter were $29.6 billion, an increase of 1.3%. Excluding changes in currency rates, net sales would have been $30.6 billion, or an increase of 5%.
  • Flipkart, an Indian e-commerce that Walmart acquired two years ago, had a record number of monthly active customers. 

Walmart Q3 2020 Earnings.jpg

 

SourceWalmart, Alphastreet

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