Online shopping makes Walmart shine

By: Miguel A. Rodriguez

09:45, 14 September 2020

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Walmart reported better than expected results due to the pandemic.

Since the pandemic took over, many businesses closed or managed to switch to online.

Walmart was one of those who worked on both fronts: online and physical stores. It seems that was the smart thing to do, as the Q1 financial report showed. The retail corporation reported a net income of $3.99 billion, with an EPS of $1.40. It is more significant than the last year's - $3.84 billion, and EPS of $1.18.

The revenue was $134.62 billion, 8.6% higher than last year’s $123.9. 

The same-store sales 7.2% increase consensus was outperformed by the 10% posted. Online sales grew by a staggering 74%.

To keep up with the demand, Walmart hired 200,000 people to clean stores, to fulfill online orders, as people stockpiled on groceries, hand sanitizer, toilet paper, and personal care items.  

The stock gained more than 3% in after-hours trading yesterday, and during today's pre-market session was up more than 1%.

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Sources: cnbc.com, investing.com



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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.