Walmart announced a rise of up to 40% as ecommerce and in store sales grow, making stock rise 11%.
Shares of Walmart Inc WMT surged higher by more than 10 percent Thursday morning after the retail giant reported its second-quarter results.
Walmart said it earned $1.29 per share in the quarter on revenue of $128 billion, which came in better than the $1.22 per share and $126.04 billion the Street was expecting. Walmart’s U.S. segment saw comps rise 4.5 percent, the strongest growth in more than 10 years and is thanks to its strong performance in grocery, apparel and seasonal. Sam’s Club comp sales rose 5 percent, which marks the strongest growth in six years.
Why It’s Matters
Walmart’s earnings report comes at a time when the impact of tariffs to retailers are unclear.
in all of our markets where we have stores and eCommerce operations, the majority of our merchandise is purchased locally in that country… In fact, we buy more merchandise, by a wide margin, in the U.S. than from any other country. –
WALMART CFO BRETT BIGGS
Walmart also revised the following for the full year fiscal 2019:
- Net sales from up 1.5-2 percent to up around 2 percent.
- Comp sales for Walmart U.S. up at least 2 percent to up around 3 percent.
- Operating income from down a low single-digit percentage to flat to slight percentage decrease.
- Adjusted EPS from $4.75-$5.00 to $4.90-$5.05.
At time of publication, Walmart’s stock was up 10.8 percent at $99.98 in pre-market trading.