Walmart Sales Rise Even as Pandemic Wanes -- Update
May 18 2021 - 08:33AM
Dow Jones News
By Sarah Nassauer
Walmart Inc.'s sales continued to rise during the spring quarter
though at a slower pace than earlier in the Covid-19 outbreak, as
some consumers returned to more typical shopping patterns as the
pandemic wanes.
Comparable sales, those from U.S. stores and digital channels
operating for at least 12 months, rose 6% in the quarter ended
April 30 compared with the same period last year. U.S. e-commerce
sales rose 37%. It was the slowest online growth for Walmart since
the coronavirus outbreak in early 2020 upended the retail
landscape.
Sales of nonfood items jumped more than 20% in the quarter,
aided by government stimulus checks as customers splurged on
recreation, home improvement and apparel items, the company said.
Grocery sales fell compared with the same quarter last year when
shoppers hoarded some goods such as food and toilet paper, but the
retail behemoth gained grocery share versus last year, Walmart
said.
"Our optimism is higher than it was at the beginning of the
year. In the U.S., customers clearly want to get out and shop," CEO
Doug McMillon said in a release. "Stimulus in the U.S. had an
impact, and the second half has more uncertainty than a typical
year. We anticipate continued pent-up demand throughout 2021."
During the same quarter last year, Walmart's U.S. comparable
sales grew 10% and e-commerce jumped 74% as consumers
stockpiled.
Overall, Walmart's global revenue rose 2.7% to $138.3 billion in
the April-ended quarter. Net income decreased 32% to $2.7 billion,
including losses on its sale of its U.K. and Japanese units and
adjustments to the value of its stake in Chinese e-commerce company
JD.com Inc.
Shares of Walmart rose 3% in early trading.
Walmart and other retailers face rising product prices, worker
shortages and new consumer trends as pandemic shopping habits
evolve. April U.S. retail sales were flat compared with March, when
retailers benefited after shoppers spent government stimulus
checks. Restaurant sales rose in April, while sales shrunk in a
range of retail store categories including furniture, sporting
goods, clothing and general merchandise, according to U.S.
government data.
That could leave a smaller sales pie for retailers that sell
goods.
Home Depot Inc. said Tuesday its comparable sales surged 31% in
the quarter ended May 2 compared with the same period last year.
The company is capitalizing on unprecedented demand for
home-improvement projects. Department store chain Macy's Inc.
reported a jump in quarterly sales and swung back to a profit from
the year-ago period when many of its stores were temporarily
closed. Compared with the same period in 2019, Macy's comparable
sales fell 10.5%.
Meanwhile, Walmart's principal rival Amazon.com Inc. continues
to grow sales and profits rapidly and hire thousands of workers.
The e-commerce giant recently reported record quarterly profit with
revenue rising 44% to $108.5 billion. Its results are bolstered by
large cloud-computing and advertising businesses.
Walmart is spending heavily to continue to grow online and
diversify its business to include healthcare, financial services
and advertising, hoping to mimic some of Amazon's financial model.
In February, Walmart said it expects $14 billion in capital
expenditures during the current fiscal year, up from about $10
billion last year.
On Tuesday, Walmart raised its forecasts for operating profit
for the current fiscal year and said it expects U.S.
comparable-sales growth to stay around a previously stated range of
a low-single digits percentage.
Write to Sarah Nassauer at sarah.nassauer@wsj.com
(END) Dow Jones Newswires
May 18, 2021 08:18 ET (12:18 GMT)
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