Today Walmart has released their earnings report for Q3 which has topped Wall Street expectations. The pandemic has seen Walmart record a staggering 79% increase in there eCommerce sales.
With many states across the US still battling with the effects and impact of Coronavirus, many shoppers are swapping browsing the aisles, for browsing the website and having groceries delivered to their door.
“We’re convinced that most of the behavior change will persist beyond the pandemic and that our combination of strong stores and emerging digital capabilities will be a winning formula,”
“Customers will want to be served in a variety of ways and we’re positioned to save them money, provide the variety of product choices they’re looking for, and deliver the experience they choose in the moment.” – Doug McMillon, President & CEO, Walmart
Walmart Q3 Numbers
In the third quarter, Walmart reported a net income to $5.14 billion, or $1.80 per share, from $3.29 billion, or $1.15 a share, just a year earlier.
Excluding items, Walmart earned $1.34 per share. Analysts were expecting Walmart would earn $1.18 per share, according to Refinitiv.
Total revenue grew by 5.2% to $134.7 billion from $128.0 billion a year earlier, exceeding Wall Street’s expectations which were set at $132.2 billion.
Walmart’s same-store sales in the U.S. grew by 6.4%, higher than the increase of 3.9% projected by StreetAccount survey.
Walmart subsidiary, Sam’s Club, also had a strong quarter. The membership warehouse club’s same-store sales increased about 11%, excluding fuel, and its eCommerce sales jumped 41%.
The retailer’s international business grew, but at a slower rate than the US business. Net sales in the third quarter were $29.6 billion, an increase of 1.3%. Excluding changes in currency rates, net sales would have been $30.6 billion, or an increase of 5%.
Should eBay Be Worried?
Throughout this year we have reported on the continued growth of Walmart and how they had replaced eBay in the number 2 spot for eCommerce market share.
Whilst eBay also announced favourable results for their Q3 there has still been very little news or development from them throughout 2020.
After the news around the stalking scandal that broke earlier this year which has not been good for eBay’s reputation due to the number of high level executives involved, not much has come out of eBay since.
With Walmart enjoying a surge in popularity and more importantly sales, and eBay appearing to flounder throughout 2020, it begs the question how will the landscape of eCommerce continue to change into 2021?