Wal-Mart draws more shoppers, online sales jump

Even during the peak holiday season, Wal-Mart Stores could achieve e-commerce sales growth of 29 percent only while GMV jumped 36.1 percent in the fourth quarter.

"We're transforming to become more of a digital enterprise", said Walmart CEO Doug McMillon in a recorded call for investors.

McMillon has used the Jet acquisition as a catalyst for online growth. Similarly, the company's last 5 years high P/E ratio is 17.14 and low P/E is 13.99, whereas, the industry's and sector's high P/E for the past year is 44.75 and 42.44 respectively and low P/E ratio for the last 5 years is 20.21 for the industry and 26.6 for the Sector.

Walmart has acquired several online retail startups in the past year, including the unicorn Jet.com and specialty retailers Moosejaw, ModCloth and ShoeBuy. The clothing sites are operating as stand-alone operators and appeal to millennial shoppers.

Wal-Mart is also relying more on automation, reducing labor costs. Since Lore joined the company, the number of items available, including on its third-party online marketplace, has risen to more than 50 million. That's up 10 million from a year ago. That might look like it's taking a page from Wal-Mart's playbook. "We remain confident in our strategy and are moving with speed to deliver value to our customers, associates and shareholders".

Wal-Mart recently rolled out free-two-day shipping on order over $35, prompting rival Amazon to slash its free shipping threshold for shoppers who don't have an Amazon Prime membership.

Cramer's comment came as Wal-Mart has picked up some customers from mainstream grocers and said its grocery business in the U.S. It also has been lower shipping prices.

Walmart believes the success it enjoyed for the quarter was due to its ongoing efforts of improving and integrating its e-commerce and in-store businesses.

Late last month, there were reports that Amazon considered a takeover of grocery company Whole Foods. The so-called Store No. 8 will be located in Silicon Valley. The company has invested $2.7 billion in higher wages and training for workers to decrease turnover and make the shopping experience more desirable.

The chain's US same-store sales grew for the 11th consecutive quarter, rising 1.4% in the period ended April 30, just beating analysts' estimates.

The Standard & Poor's 500 index increased 3 points, or 0.2 percent, to 2,360.

Wal-Mart reported first-quarter profit of $3.04 billion.

On a per-share basis, the Bentonville, Arkansas-based company said it had profit of $1. For the second quarter, Target expects another low-single digit decline in comparable sales, and adjusted earnings per share of between 95 cents to $1.15.

The retail giant reported that its total revenue increase 1.4% to $117.5 billion. Its online sales rose a staggering 63 percent and added 0.8 percentage points to its first-quarter same-store sales gain. The company also projects earnings per share of $1 to $1.08 in the quarter.

Bond prices slipped. The 10-year Treasury yield rose to 2.23 percent from 2.22 percent.

  • Zachary Reyes