Walmart’s growth streak continued in its second fiscal quarter with a total revenue of $130.38 billion as opposed to analysts’ sales projection of $130.11 billion, and its eCommerce business had a pivotal role in it.
The retail giant reported that its online sales increased by 37% thanks to the strong growth in online grocery. It also attributed this growth to its four-day July sales event and NextDay delivery service which rolled out in May and is currently available to 75% of the U.S. population.
Walmart said its comparable store sales grew 2.8% and increased by 7.3% on a two-year stacked basis, which is the strongest in over 10 years.
More stores and delivery options
Walmart’s financial statement showed that it ended the quarter with more than 2,700 stores offering grocery pickup and more than 1,100 stores offering same-day delivery. The company said its omni-channel strategy makes it well positioned to provide customers more options for receiving their orders.
Furthermore, it said that it’s gaining market share in key categories, including food, consumables, health and wellness, and toys.
“We’re making progress to improve the fundamentals of our traditional eCommerce business. We’re lowering our variable costs per unit, improving gross margin and increasing the number of monthly active users. I’m also excited about the opportunity we have to expand our marketplace. We’ve quickly grown this piece of the business in recent years, and I know we can do even more as we look ahead.” – Doug McMillion, President & CEO, Walmart Inc.
McMillion added that the company is adjusting its earnings guidance for fiscal year 2020
between a slight decrease to a slight increase, compared to last year’s which reflected a low single-digit percentage decrease.
The retail giant has several things in the pipeline, one of which is a $1.2 billion investment to upgrade its logistics network in China.
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