![]() ![]() The company has hired over half a million new employees this year. Since the spring, Americans have turned to its stores and website for groceries, cleaning supplies and items to pass the time, from puzzles to bicycles. Walmart has been one of the beneficiaries of stay-at-home trends during the pandemic - a trend that continued in the most recent quarter, even without a boost from government stimulus dollars. The company said Covid-19 added about $600 million in incremental expenses in the third quarter, but were partially offset by a noncash impairment charge in the third quarter of last year. Flipkart, an Indian e-commerce retailer that Walmart acquired two years ago, had a record number of monthly active customers. Excluding changes in currency rates, net sales would have been $30.6 billion, or a rise of 5%. Net sales in the third quarter were $29.6 billion, an increase of 1.3%. The retailer's international business grew, but at a slower rate. The membership warehouse club's same-store sales increased about 11%, excluding fuel, and its e-commerce sales jumped 41%. Walmart subsidiary, Sam's Club, had a strong quarter, too. grew by 6.4%, higher than the increase of 3.9% expected by StreetAccount survey. Total revenue grew by 5.2% to $134.7 billion from $128.0 billion a year earlier, exceeding Wall Street's expectations of $132.2 billion. Analysts were expecting Walmart would earn $1.18 per share, according to Refinitiv. Excluding items, the company earned $1.34 per share. In the quarter, Walmart reported net income rose to $5.14 billion, or $1.80 per share, from $3.29 billion, or $1.15 a share, a year earlier. gain of 3.9% expected by StreetAccount survey $132.2 billion expected by Refinitiv estimates $1.18 expected, according to Refinitiv's consensus estimates Earnings per share: $1.34, adjusted vs.Here's what the company reported for the fiscal third quarter ended Oct. Its stock has gained nearly 26% so far this year, bringing Walmart's market value to $423.3 billion. Shares touched an all-time high of $153.40 on Monday. Walmart shares closed Tuesday down 2% to $149.37. He said the rising number of Covid-19 cases across the country "reminds us we must be vigilant" and urged elected officials to work together to help small businesses. "Customers will want to be served in a variety of ways and we're positioned to save them money, provide the variety of product choices they're looking for, and deliver the experience they choose in the moment."Īnd, he added, the retailer had a strong quarter, despite "an unusual and softer back-to-school season and less benefit from government stimulus spending versus the first half of the year." "We're convinced that most of the behavior change will persist beyond the pandemic and that our combination of strong stores and emerging digital capabilities will be a winning formula," he told investors on an earnings call. It’s weight is ~7.5%.Walmart did not provide an outlook, but the company's CEO, Doug McMillon, said the popularity of the online shopping services will not fade away. Walmart is the third largest holding in XLP. Together, they account for ~13.5% of the portfolio’s holdings. Walmart and other retail companies-Costco, Safeway, and Kroger-are included in the portfolio holdings of the Consumer Staples Select Sector SPDR ETF (XLP). The USDA partially attributed the increased concentration to the growth of Walmart supercenters over the years. The market share for the top 20 players spiked from 39.2% to 63.8% over the same period. In 2013, the market share for the top four players rose to 36% of industry sales-from just 16.8% in 1992. The trend of favoring larger chains over smaller players firmed over the years. It has strategic pricing through programs like the Savings Catcher, Save Even More, Ad Match, and price rollbacks. It also helped the retailer garner market share from other companies by strategic pricing. Walmart’s everyday low price, or EDLP, strategy stems from these economies. They can offer lower prices than smaller companies. Larger players-like Walmart, Kroger, Costco (COST), and Safeway-enjoy economies in purchasing, supply chain management, and other fixed costs. The margins are low because firms seek to offer lower prices than other companies in the industry in a bid to spur sales.Īs a result, scale is important. The industry also has few barriers to entry. ![]() It was followed by Kroger (KR), Safeway (SWY), and Publix Super Markets-in that order. Department of Agriculture), Walmart was the largest seller of grocery items in the US in 2013. It accounts for 56% of sales-or $188 billion.Īccording to the USDA (U.S. Walmart’s largest merchandising category is groceries. ![]()
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