Walmart surges as earnings report shows its ecommerce business nearly doubled amid coronavirus (WMT)

Associated Press

• Walmart surged 4% after reporting its fiscal first quarter earnings on Tuesday.
• The company topped analyst estimates and reported a surge in its ecommerce business of 74%.
• On top of its ecommerce division, sales at its physical stores surged, with the company reporting comparable sales up 10% in the US.
• Visit the Business Insider homepage for more stories.

Walmart surged 4% after the company reported its fiscal first quarter earnings on Tuesday.

The company’s earnings report gave a glimpse into how the retailer has fared amid the coronavirus lockdowns that spurred consumers to stockpile pantry items.

Here are the key numbers:

Revenue: $134.62 billion, versus the $130.91 billion estimate
Adjusted earnings per share: $1.18, versus the $1.12 estimate
Comparable sales: +10% in US,  versus the +7.2% estimate
Ecommerce sales: +74%

Walmart is firing on all cylinders, with its comparable sales easily topping analyst estimates.

The company experienced comparable sales growth of 3.4% in its international segment, and 9.6% in its Sam’s Club segment.

The big-box store saw strength in its food, consumables, and health and wellness categories, with average ticket prices up 16.5% during the quarter.

The company saw a surge in sales driven by its continued expansion of grocery pickup and delivery services.

Read more: 10 big money managers shared with us their favorite hidden gems in the market, and the contrarian trades they’re making amid the pandemic

Walmart’s strength in ecommerce is apparent in not only the 74% sales growth registered in the quarter, but also by the company’s decision to discontinue its Jet.com brand.

Walmart will focus on leveraging the continued strength in its Walmart.com brand, the company said, instead of Jet.com.

Walmart acquired Jet.com in 2016 for $3.3 billion to expand its ecommerce capabilities.

Despite the robust first quarter earnings, Walmart said it would withdraw its guidance for its fiscal year 2021. 

Chief Financial Officer Brett Biggs said in Walmart’s earnings release:

“The decision to withdraw guidance reflects significant uncertainty around several key external variables and their potential impact on our business and the global economy, including: the duration and intensity of the COVID-19 health crisis.”

Walmart shares were up 3.3% to $131.99 in Tuesday morning trading.