Why Walmart Dominance In Q2 Will Continue For Rest Of Year
Forbes | August 18, 2020
Walmart U.S. comparable sales grew by 9.3% and Walmart U.S. e-commerce grew 97%. Those two headline news items blew me away. Management explained that much of the special purchases were for home as people build up their home office and adjusted to the coronavirus COVID-19 pandemic by working from home.
Total revenues increased to $137.7 Billion from $130.4 Billion. This is a 5.6% increase. Consolidated income was $6.4 Billion compared to $3.6 Billion a 79.4% increase. This was way above anybody’s estimates.
Walmart U.S. net sales increased 9.3% to $93.3 Billion from $85.2 Billion in the second quarter. The average ticket increased 27% and operating income rose to $5.1 Billion from $4.7 Billion in the second quarter. The strength was both in general merchandise and food.
I anticipate that the strong sales on e-commerce will continue. There is no change in the fear customers have to shop in stores and Walmart’s quick delivery assures customers that their needs can be met. The company now has the trust of customers being able to shop for every day low prices.