Walmart Boasts Record Online Sales & Positive Earnings

Walmart posted the biggest growth in online sales Tuesday, following clients cashing in their stimulus checks at the retail giant’s online store during the COVID-19 pandemic. Online sales have almost doubled in the second quarter, helping Walmart make it out a winner, as stock hit $134.80 record high in morning trading.

The giant’s operating income had risen 8.5% to $6.1 billion in the quarter, while adjusted earnings per share saw a value of $1.56, topping the average estimate of $1.25.

Nevertheless, as stimulus funds began to run short, Walmart’s sales came back to normal, currently recording an only 4% rise in comparable sales in July, and already seeing a marginal shares drop! How so quick?

"The health crisis has created ... both tailwinds and headwinds to our business," says CFO Brett Biggs "In Q2, we saw stronger-than-expected sales due in large part to stock-up buying and stimulus spending, but the duration and extent of future government stimulus remains uncertain."

Additionally, the back-to-school season did not make such a major sales ripple as it usually does. As school reopening plans are as vague as ever - the need for supplies is logically dwindling.

Certainly this worries some, but Walmart’s online and grocery business are still the brightest spots of the retail giant, and investors are taking a very close look at Walmart+. A to-be rival of Amazon’s Prime subscription, its launch could attract even more new customers and turn them into long-term loyal buyers. Walmart executives commented Tuesday that they are working hard towards the launch of the service.

*The products advertised are only available to clients under Fondex Limited Seychelles (SDL No: SD037).