Walmart Flexes In The Fourth Quarter, Beats All Expectations

Daniel Fowler
February 20, 2019

Comparable sales for Walmart stores in the USA - a key performance barometer - rose 4.2 per cent in the quarter that included Christmas, beating analysts' estimates by a full per centage point.

Regarding Flipkart business, Walmart, Inc Chief Financial Officer and Executive Vice President Brett M Biggs said there'll be some additional costs to comply with the new regulations, but we don't now believe there will be a significant enough to impact to total company guidance for the year. The gambit worked, as toys helped fuel the sales beat, Chief Financial Officer Brett Biggs said in a Tuesday morning interview.

Walmart shares were up 4.6% following Tuesday's results.

USA retail sales recorded their steepest drop in more than nine years in December, the government reported last week, as receipts fell across the board, suggesting a sharp slowdown in economic activity at the end of 2018. The continued expansion of e-commerce also hurts Walmart's profitability, as online sales typically deliver lower margins than in-store sales due to fulfillment costs.

FILE PHOTO: Walmart's logo is seen outside one of the stores in Chicago, Illinois, U.S., November 20, 2018.

More crucially, 2,100 stores (3,100 by the end of the year) allow for grocery pickup and another 800 offering delivery.

EuroMillions ticket worth €175 million sold in Ireland
However, it is suggested that there may be confusion, as the store had sold a winning €500,000 slip earlier this month. This maximum jackpot has only been won three times over the history of the game which is played in nine countries.

The company reiterated its 2019 guidance provided in October. "There will be additional cost to comply with the new regulations, but we don't now feel there will be a significant impact on current guidance", McMillon said. Amazon.com Inc is trying to crack the food category, especially since it bought organic supermarket chain Whole Foods. There's a last mile delivery.

The U.S. retailer, which overtook Apple Inc to become the third largest e-commerce retailer previous year, is likely to capture a 4.6 percent share of the U.S. e-commerce market, behind eBay Inc and Amazon, according to research firm eMarketer. The improvements - along with its $17 billion acquisition of India's e-commerce giant Flipkart - comes as Walmart amps up the fight against Amazon for dominance in the global retail sector.

McMillon said the company was disappointed in India's revised e-commerce regulations, which ban companies from selling products via firms in which they have an equity interest and also bar them from making deals with sellers to sell exclusively on their platforms.

United States retail major, Walmart on Tuesday expressed disappointment with the Indian government's decision to implement the changes in rules for ecommerce firms but was hopeful for a "collaborative regulatory process" for a level playing field.

In other areas, Walmart also helped itself with moves like by expanding its toy selection by 40% for the holiday season, picking up a lot of business that would have gone to Toys "R" Us.

The Bentonville, Arkansas-based company is adding new in-store technology in an effort to ease customer experience and bolstering its e-commerce capabilities. It said its US two-year comparable-stores sales-the sum of the gains in both years-increased 6.8%, the strongest growth in nine years.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER