NEW YORK: Walmart scored another round of strong earnings Tuesday as it sharpens its focus on e-commerce growth and retreats from some overseas markets as the coronavirus roils the retail economy.
The world’s biggest retailer enjoyed another quarter of lofty US sales, although the gains moderated from earlier in the pandemic when rival “non-essential” retailers were closed and shoppers were boosted by US government stimulus funds.
Executives said the pandemic had hastened shifts towards “omnichannel” retail that meets the needs of consumers who want to shop at home or retrieve packages at stores after ordering them online. Pickup is available at three-quarters of Walmart’s 4,753 US stores and same-day delivery operates from about 60 percent of the stores.
“We’re convinced that most of the behavior will persist beyond the pandemic,” Chief Executive Doug McMillon said of the changes in consumer habits.
Walmart said e-commerce sales grew 79 percent in the quarter.
Net income came in at $5.1 billion, up 56.2 percent from the year-ago period, following a 5.2 percent increase in sales to $134.7 billion in the quarter ending October 31, easily topping analyst estimates. Walmart’s US division accounted for nearly 80 percent of its operating profits during the quarter, but the company has also made significant changes in its international portfolio in recent weeks.
In Japan Walmart will sell 85 percent its Japanese subsidiary Seiyu to investment firm KKR and e-commerce group Rakuten for 172.5 billion yen ($1.6 billion). Back in the US, Walmart reported third-quarter same-store sales growth of 6.4 percent, a strong increase, but below the 9.3 percent gain in the second quarter and the 10 percent jump in the first quarter, which included the most severe of the spring lockdowns.—AFP
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