Walmart blew past Wall Street projections in the first quarter with U.S. stimulus payments to Americans helping to boost sales and the company raised its expectations for the year.
Sales at stores opened at least a year rose 6%, slowing from the 8.6% increase during the fiscal fourth quarter. But it topped last year’s 10% spike when Walmart turned into a pandemic lifeline for millions of people. Online sales rose 37% down from its 69% during the fourth quarter.
“Our optimism is higher than it was at the beginning of the year,” said CEO Doug McMillon. “In the U.S., customers clearly want to get out and shop.”
Save better, spend better: Money tips and advice delivered right to your inbox. Sign up here
McMillon said that government stimulus money boosted sales and that there is a lot of pent-up demand as the nation emerges from the pandemic.
Shares rose nearly 4%, or $3.52 per share to $143.78 before the opening bell.
Walmart Inc. blew past Wall Street projections, reporting on May 18 that strong sales results for the fiscal first quarter as shoppers continued to keep shopping at the discounter even as the pandemic eases. (Photo: Charles Krupa, AP)
Walmart has pushed further into fast and convenient delivery over the past year and sales at its stores were elevated with so many other retailers forced to close during lockdowns. Even the massive infrastructure put into place by Walmart in recent years was strained by the crush of orders from millions of people sheltering at home.
Mask wars: As stores update COVID mask policies for vaccinated customers, are more conflicts on the horizon?
Stores drop masks: Home Depot, Walmart, Target, Kohl’s and Costco no longer require masks for vaccinated customers. See the list.
It bumped up spending by $14 billion to speed up its distribution network and in February said it would raise its average hourly wage to more than $15 per hour, a $1 increase. Amazon and Target have already increased hourly wages to $15 for all workers.
Source: Read Full Article