Wal-Mart‘s same-store sales for its U.S. locations climbed for the 13th-consecutive quarter, as the big-box retailer cited a bright spot in its food business, aided by some devastating hurricane relief efforts.
The Arkansas-based company on Thursday also reported strong growth online, with e-commerce sales growing 50 percent in the fiscal third quarter.
The retailer’s shares were climbing more than 2 percent in premarket trade on the news.
Here’s what Wal-Mart reported, compared with what Wall Street was expecting, based on a Thomson Reuters survey of analysts:
- Earnings of $1.00 a share, excluding items, compared with a forecast profit of 97 cents per share.
- Revenue was $123.179 billion, versus an estimate of $120.997 billion.
- Same-store sales for U.S. stores, excluding fuel, climbed 2.7 percent, compared with an anticipated increase of 1.8 percent.
“We have momentum, and it’s encouraging to see customers responding to our store and eCommerce initiatives,” Chief Executive Doug McMillon said in a statement.
All signs point to Wal-Mart being in a retail war with internet giant Amazon.
After acquiring Jet.com, the big-box retailer’s online sales have skyrocketed, as Wal-Mart has brought other brands including Bonobos, Modcloth and Moosejaw into its portfolio. Meanwhile, the company is expanding curbside grocery pick-up service, beefing up its digital assortment and working with Amazon-rival Google on voice-activated shopping.
Though, one weakness for Wal-Mart of late has been that its profit margins have dipped slightly due to more aggressive promotions. The retailer has been investing heavily to keep its prices competitive.
Heading into the holidays, Wal-Mart plans to invest more in its stores — holding seasonal parties for customers — and offer more merchandise online. Just this week, the company announced a partnership with Lord & Taylor, where Walmart.com will begin selling the department store chain’s high-end apparel options in spring of 2018.
“We remain outperform & we are encouraged by digital innovation and physical store execution at WMT,” Cowen & Co. analyst Oliver Chen wrote in a recent note to analysts. “Additionally, we believe WMT further leveraging Jet.com … over the next year will resonate with customers and help WMT efficiently grow online baskets.”
As of Wednesday’s market close, Wal-Mart shares have climbed nearly 30 percent in 2017.
This is a developing story. Please check back for updates.
