Walmart on Tuesday reported earnings and revenue for this past holiday quarter that topped analysts’ expectations, as its e-commerce sales surged 43 percent.
The company also said it’s maintaining its sales outlook for the current year.
CEO Doug McMillon said “a favorable economic environment” has been helping Walmart grow sales and gain market share.
Walmart shares were up more than 4 percent in premarket trading on the news.
Here’s what the retailer reported for the fourth quarter of fiscal 2019 compared with what analysts were anticipating, based on a survey by Refinitiv:
*Earnings per share, adjusted: $1.41 vs. $1.33 expected
*Revenue: $138.79 billion vs. $138.65 billion expected
*Same-store sales in the U.S.: up 4.2 percent vs. growth of 3.2 percent expected
Walmart reported net income for the quarter ended Jan. 31 of $3.69 billion, or $1.27 per share, compared with $2.18 billion, or 73 cents a share, a year ago. Excluding one-time items, Walmart earned $1.41 per share, 8 cents ahead of analysts’ expectations based on a survey by Refinitiv.
Revenue climbed nearly 2 percent to $138.79 billion from $136.27 billion a year ago. That came in ahead of expectations for $138.7 billion.
Sales at Walmart stores in the U.S. operating for at least 12 month were up 4.2 percent, topping expected growth of 3.2 percent. The company said traffic at stores was up just 0.9 percent during the quarter, compared with growth of 1.6 percent a year ago. The average shopper’s ticket, however, grew 3.3 percent. A year ago, the average ticket was up just 1 percent.
Online sales were up 43 percent during the fourth quarter, matching growth during the previous quarter. Walmart said that, for the year, it achieved e-commerce sales growth of 40 percent, which it had been targeting.
Walmart didn’t change its sales outlook for fiscal 2020, which it shared with analysts and investors last October. Net sales growth is predicted to be at least 3 percent, hurt by deconsolidation of Walmart’s Brazil operations and reduced tobacco sales at its wholesale division, Sam’s Club. Walmart still expects net sales to climb about 5 percent internationally.
Walmart it still calling for U.S. same-store sales to climb 2.5 to 3 percent. Fiscal year 2020 operating income is expected to decline slightly.
The company is, meanwhile, targeting e-commerce sales growth of 35 percent for the year, which would be less than what it was able to achieve in 2018.
Walmart shares are up about 7 percent so far this year.
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