Walmart’s e-commerce revenue grew by 37% in the first quarter.
Concerns still linger over the ongoing trade war but on Wednesday, the Dow went up 200 points after Walmart and Cisco released strong earnings reports. Walmart’s stock alone rose by more than 3.5%.
And according to the company’s CEO, it is well positioned to meet its 2019 goals. Here is an overview of Walmart’s earnings report:
- Earnings per share reached $1.13; investors expected $1.02
- Revenue reached $123.93 billion; investors expected $125.03 billion
- U.S. same-store sales grew by 3.4%; investors expected 3.3%
Walmart’s first-quarter sales were dragged down by currency in international markets. But overall, this was a positive earnings report which showed strong same-store growth. And the company continues to expand its digital presence.
Walmart invests in e-commerce and other initiatives
One of the biggest challenges for any company is having to compete with Amazon. But Walmart is holding its own, largely because it made a series of investments in its supply chain, grocery business, and website.
Walmart is also investing in technology that helps it fulfill customer orders faster. And the company recently announced it would begin offering next-day delivery on select items. It’s unclear how much the company will have to spend to make that happen.
The company’s e-commerce business is also growing at a fast pace. E-commerce sales grew by 37% which is an increase of 4% from a year earlier. This growth was largely fueled by the company’s fashion and home selections.
Walmart also has plans to open 100 veterinary clinics in its stores within the next year. In these clinics, pets can receive vaccines, routine exams, and be treated for minor issues.
The company also plans to offer an online pet pharmacy designed to compete with Chewy.com. According to a company spokesperson, Walmart decided to pursue these initiatives after noticing a 60% increase in the number of pet-related items purchased online.
Tariffs remain an ongoing concern
One of the biggest challenges Walmart faces is the threat of increased tariffs. The company said its paying close attention to the situation but is hopeful the U.S. and China can come to some sort of deal.
Walmart’s CFO Brett Biggs said that the company’s goal is always to be the lowest priced option. However, if tariffs increase then the company will have to raise its prices as well. But Biggs said Walmart will do everything it can to keep prices low for customers.