Walmart reported its third-quarter earnings, which topped the expectations of Wall Street. This is because of the customer’s decision to shop online, which sent U.S. e-commerce sales to 79%. According to the discounter, customers continue to embrace the new way of shopping, which people adopted during the onset of the coronavirus pandemic crisis.
There have been reports that people have started their holiday shopping, and instead of browsing the store aisle, the majority of them are now shipping purchases right to their homes. They are either picking up their online purchases using curbside or getting their groceries delivered right at their doorsteps.
The State of Online Shopping in the Future
A statement from Walmart CEO Doug McMillon said that at the moment, there isn’t any clear future outlook regarding online shopping. However, given the popularity and trend of this new style of shopping services, it is something that will not fade away any time soon. The CEO foresees the new shopping habit continues to exist beyond the pandemic. He believes that the emerging digital capabilities and the strong stores will be a winning formula.
He added that their stores are positioning to save customers money and giving them the services they want and how they want. They are also focusing on providing a variety of product choices to customers to ensure that they deliver an overall good customer experience now and beyond.
Wallmart Sales Performance in the Fiscal Third Quarter Ending October 31
A statement from Walmart CEO Doug McMillon said that the retailer’s quarter was strong even with less stimulus package from the government and the softer and unusual back-to-school period during the first half of the year.
- Per-share earnings were $1.34 vs. the expected $1.18
- Revenue was $134.7 billion vs. the expected 132.2 billion
- U.S. same-store reported sales of up to 6.4% vs. a gain of 3.9%
In the quarter, there was a rise of $5.14billion in the Walmart net income if you exclude the items the company earned. Walmart’s same-store sales in the United States grew by 6.4%, which is higher compared to the increase of 3.9% that the StreetAccount survey expected.
The Spread of Black Friday Sales
According to reports, because of the pandemic, Walmart started its holiday sales early and was able to spread out its deals. For instance, instead of the doorbusters tradition, the store divided up Black Friday into various online events and multiple stores to enable people to shop throughout the season.