Walmart

  • Walmart reported fiscal fourth-quarter earnings that fell short of analysts’ estimates, as the retailer saw weak demand for toys, apparel and video games during the holiday season.

  • Fourth quarter Revenue grew 2.1% to $141.67 billion from $138.79 billion a year ago (expected: $142.49 billion). Net income for the quarter came in at $4.14 billion, or $1.45 cents a share, compared with $3.69 billion, or $1.27, a year earlier. Excluding once-offs Walmart earned $1.38 a share (expected: $1.43 per share).

  • Sales at US Walmart stores (open for at least 12 months), as well as via its website, were up 1.9% (expected: 2.3%). E-commerce sales during the quarter were up 35%, driven by strength in the grocery segment. For the full-year, Walmart reported online sales growth of 37%, beating its own target of 35%.

  • Guidance came in short of expectations. The company anticipates e-commerce growth to slow. Walmart also says all forecasts do not include any impact from the coronavirus outbreak, so it could end up being impacted in China in the first and second quarters. Walmart has 430 locations in China and owns a minority stake in JD.com, one of China’s biggest e-commerce companies.

  • Walmart has 265 million weekly global customers, and 11,500 physical stores globally. It also has a reputation for the lowest prices (besides Amazon). Walmart's overall ecommerce business is still unprofitable. However, over half of Walmart's US sales are from food, and its investing heavily in its online grocery business. The US online grocery market is forecast to make up 20% of all grocery sales by 2025. With 90% of Americans living within 10 miles of a Walmart, its delivery-of-groceries-business could be the cash cow of the future.

Walmart