Walmart sales are boosted by U.S. stimulus measures. Business and economic news

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Wal-Mart reported better-than-expected results for the first three months of this year because Americans’ attention to stimulus checks boosted sales.

Walmart (Walmart) raised its annual earnings forecast on Tuesday after the company announced better-than-expected first-quarter results. The results showed that shoppers spent a lot of money on clothes, lawn and garden supplies, stimulated by the US government’s stimulus spending. .

Sales of stores that have been open for at least one year have increased by 6%, compared with 8.6% in the fourth quarter. However, when Wal-Mart became the lifeline of the coronavirus pandemic for millions of people, this number exceeded the peak of 10% last year. Online sales increased by 37%, down from 69% in the fourth quarter.

CEO Doug McMillon said: “We are more optimistic than at the beginning of the year.” “In the United States, customers obviously want to go shopping.”

Macmillan said that the government’s stimulus funds boosted sales, and as the country got rid of the pandemic, demand was suppressed a lot. As people go out for more activities, Wal-Mart said that as shoppers take off their masks, sales of travel goods and tooth whiteners are soaring. The company also said that transactions in its stores have increased for the first time in a year.

The stock rose nearly 4%, or $5.37, to $144.78 in early trading on Wall Street.

In the past year, Wal-Mart has further promoted fast and convenient delivery, and sales of its stores have increased, so many other retailers were forced to close during the lock-up period. Even the large-scale infrastructure that Wal-Mart has built in recent years has been squeezed by massive orders from thousands of people living at home.

The company increased its spending by US$14 billion to accelerate its distribution network, and in February said it would increase its average hourly wage to more than US$15 per hour, or an increase of US$1.

Amazon and Target have increased the hourly wages of all workers to $15.

For the three months ended April 30, Wal-Mart’s first-quarter net profit was US$2.73 billion, or 97 cents per share. In the same period last year, Wal-Mart’s net profit was US$3.99 billion, or US$1.40 per share. Adjusted earnings per share were $1.69. FactSet’s data shows that analysts’ average expectation is $1.21 per share.

Sales increased by 2.6%, reaching 137.16 billion U.S. dollars. Analysts had expected it to be 132.16 billion US dollars.

Wal-Mart said it now expects revenue to grow in the high single digits. Previously, the company had expected that profit for the year would decline slightly.

Wal-Mart still faces many challenges. Analysts believe that the rate of sign-up for the Wal-Mart Plus membership system is slowing down. The plan makes shoppers spend $98 a year, or $12.95 a month. The retailer hopes this will become a major competitor to Amazon’s large-scale Prime free shipping program launched 15 years ago. Wal-Mart Plus provides members with 160,000 items delivered on the same day, fuel discounts at certain gas stations, and the opportunity to check out at Wal-Mart stores without waiting for registration.

McMillon told analysts on Tuesday’s earnings conference call that it is the pick-up and drop-off from the grocery store super center that drives the sales membership, and capacity is an issue. He said that the focus now is on the quality of the experience, not the quantity.

Last Friday, Walmart Inc. said that unless state or local laws provide otherwise, shoppers or workers who have been vaccinated against the coronavirus in stores will no longer be required to wear masks. If they are vaccinated, it will provide workers with a $75 bonus.



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