Walmart’s Q4 Revenue Better Than Estimates, Thanks To E-Commerce
Retail major Wal-Mart reported that its earnings during the holiday quarter exceeded the expectations of analysts and its e-commerce platform’s sales surged by 43 % due to several regular customers using its online grocery service and increasing their spending at every sale. CEO Doug McMillon while announcing the results stated that this has been due to favorable economic environment that has been helping Wal-Mart grow well and increase its market share in food and toys. The excellent results from the chain brought cheer to the retail industry after the dismal holiday sales data released by Commerce Dept.
All the doubts that investors and market had about Wal-Mart’s financial condition during the holiday season were dispelled by this report as it shows that the retailer did well despite all the worries about shaky share markets slowdown. It could be due to early release of food stamps by the government due to government shutdown that helped give a last minute boost to its grocery sales. CFO Brett Biggs says that now that gas prices are down consumers look as if they in good shape and their business model are working well in all environments.
The firm said that it is maintaining a buoyant outlook for 2019 and raised the annual dividend by 2 % to $2.12 per share and this news also helped push its share prices by 4 %. During the announcement of its earnings, Wal-Mart declared that EPS adjusted at $1.41 against expectation of #1.33, Revenue is up by $138.79 billion as against expectation of $139.65, and Same Store sales within US went up by 4.2 % against expectation of 3.2 %.
Its net income for the quarter that ended on 31st Jan was $3.69 billion compared to $2.18 billion during last year and revenue climbed by 2 % to $ 138.79 billion from 136.27 billion year ago.