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Coronavirus has significantly affected Walmart’s net sales and operating results, as the demand for many categories of products has been unprecedented, which led to strong figures. WMT stock is up.
As people are obeying stay-at-home orders to avoid being infected with the novel coronavirus, retailing companies have seen incredible demand for deliveries. A prime example of those who have taken advantage of the pandemic is the American retail giant Walmart Inc (NYSE: WMT). Today, Walmart has released its first-quarter earnings and boasted better than expected results driven by e-commerce sales growth and higher traffic in stores.
Walmart Q1 2020 Earnings Report: Highlights
Coronavirus has significantly affected Walmart’s net sales and operating results, as the demand for many categories of products has been unprecedented, which led to strong figures.
Firstly, Walmart has reported a $10.7 billion increase in revenue that reached $134.6 billion, while analysts expected $132.48 billion. Further, Walmart’s adjusted earnings per share have totaled $1.18, compared with $1.12 the Wall Street predicted.
Secondly, Walmart boasted significant sales growth. Net sales at Walmart International were $29.8 billion, an increase of 3.4%. Comparable sales in the US rose by 10%. What has really taken aback is online sales that soared by 74% year-over-year amid strength in grocery pickup and delivery services.
Walmart CFO Brett Biggs commented:
“It felt like several different quarters within a quarter, particularly in the US.”
According to the retailer, the second quarter will be no worse.
“The second quarter has started off pretty well as we continue to see the stimulus money come in for consumers. The company’s approach to leadership through shared value has never been more evident than it is now. From associates to customers to communities, shareholders and more, Walmart is working hard to make a difference.”
To fight coronavirus, Walmart has spent about $900 million on COVID-19-related expenses. The company hired more than 235,000 new associates in the US, announced special cash bonuses to all hourly associates in the country totaling approximately $755 million, provided $35 million in philanthropic support. In addition, Walmart created COVID-19 Emergency Leave policy and launched 139 COVID-19 testing sites in store parking lots.
In its report, Walmart has also announced it would run its Jet.com business it acquired in September 2016 no more. At that time, the acquisition was “critical to accelerating its Omni strategy.” But now, Walmart is strong without Jet.com.
Walmart (WMY) Stock Soars
Yesterday, Walmart (WMT) stock closed at $125.94. In the pre-market today, after the company’s Q1 2020 appeared, Walmart shares soared by over 4%. The opening price made up $127.50. At the moment of writing, Walmart stock is 1.44% up, $129.50 per share.
The current price is approaching $132.33 — the all-time high Walmart stock reached on April 16. The annual change of Walmart stock makes up 7.42% to date.