Walmart Inc. (NYSE:WMT) is having a phenomenal 2019 so far. Year-to-date, the retail giant’s stock is up 10%. This morning, the stock has taken a dip and is now trading red. On Tuesday, the company reported its earnings for the holiday season that topped analyst expectations.
Walmart on the Rise
According to CNBC, Walmart’s e-commerce sales grew 43% last quarter. The growth can be attributed to more shoppers using the company’s online grocery delivery, spending more per trip, and Walmart’s pick-up option.
“To us, the consumer looks like they’re in pretty good shape,” CFO Brett Biggs told CNBC. “Gas prices are down. … We’re always monitoring the consumer and are ready to act if things change, but we feel our guidance is good for the next year and our business model works well in most environments.”
Stocks dropped as the holiday season marched in, but it didn’t put a damper in consumer sales for the company. Many other retailers saw lower-than-anticipated sales numbers for the quarter, but this latest earnings report put Walmart ahead of the rest. Additionally, food stamps were released earlier than usual because of the partial government shut down, which also benefitted the retailer.
The e-commerce giant didn’t change its sales outlook for 2020. Walmart expects its net sales to grow at least three percent and internationally, it expects its sales to rise five percent. For the year, the company expects its Us same-store sales to rise around two and a half to three percent for the year. Last year, sales at Walmart stores in the US operating for at least 12 months were up over four percent.
On a call with analysts and investors earlier this week, Walmart’s CEO Doug McMillion said the company will also spend the most money on store remodeling. In addition, the company will also focus its efforts on e-commerce initiatives and bulking its supply chain.
“Our fulfillment shipping costs are improving as we continue to enhance our [online] assortment,” McMillon explained. “Repeat visits should increase and contribute to improving profitability.”
Walmart Stock Movement
According to Yahoo Finance, the stock is still trading red. At the time of writing, WMT shares are trading at $101.15 a share, down -$1.05 (-1.03%).
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