Wal-Mart's first-quarter comparable sales beat estimates
- Author: Zachary Reyes May 20, 2017,
May 20, 2017, 16:40
Wal-Mart Stores Inc on Thursday reported slightly higher-than-expected quarterly sales at established us stores as customer visits increased and online purchases accelerated.
BIG BEAT: Wal-Mart Stores climbed 3 percent after the world's largest retailer's latest quarterly results beat Wall Street's forecasts.
US first-quarter same-store sales rose 1.4% at the company's supercenter and discount stores.
Wall Street expects Wal-Mart Stores Inc (NYSE: WMT) to report quarterly earnings at $0.96 per share on revenue of $117.74 billion before the opening bell.
The average amount each USA shopper spent per trip declined slightly, down 0.1% "primarily due to lower sales of higher ticket items at the beginning of the quarter, as well as continued price investment", said Wal-Mart Chief Financial Officer Brett Biggs in a conference call.
"We can see that we're moving faster to combine our digital and physical assets to make shopping easier and more enjoyable for customers", said McMillon.
Wal-Mart Stores Inc. was covered by a number of analysts recently, 5 rated the stock as Buy, 6 rated Outperform, 19 rated Hold, 2 gave an Underperform and 2 rated sell. Some of the price differentials between those retailers and Wal-Mart have also been overblown, according to the note. The plan, said McMillon was gaining traction. Global e-commerce sales rose 7% from a year ago.
Wal-Mart Stores Inc (NYSE:WMT) recorded a big jump in online sales in the first quarter.
Wal-Mart expects its USA same-store sales to increase between 1.5 percent to 2 percent in the second quarter. The company's market capitalization is $2.09 billion with the total outstanding shares of 240.34 million. While the USA comp increase of 1.4% was about as expected, traffic growth of 1.5% (which accelerated on a two and three year basis) and e-commerce growth (an 80 bps contribution) surprised to the upside.
He said that Asda's offer was now more consistent in fresh food, customer service and stock availability in stores and online. This decline was primarily due to an increase in incentive payments, as well as a comparison against significant working capital changes previous year.
Retailers are closing more than 3,600 stores this year to stanch losses and filing for bankruptcy at a staggering rate. "As a company, we're moving with speed and executing against the strategy we've outlined". Analysts, polled by Thomson Reuters, were looking for earnings of 96 cents a share on $117.74 billion in revenue. On a two-year stacked basis, comp traffic advanced 3.0 percent. Earnings per share, however, grew 2 percent to $1 from $0.98 a year ago, with lower share count. (WMT) reported Thursday lower net profit in its first quarter with weak worldwide segment results.
Adjusted for one-time expenses, Target earned $1.21 per share, which was better than the 91 cents analysts were expecting and the company's forecasted range of 80 cents to $1.
Even TJX Co., the parents of TJ Maxx and Marshall's, which had been a star performer in the sector, also reported lower-than-expected results on Tuesday, blaming the weather in part for its performance.