WOW!! Great performance in chasing Amazon, not working!
Acquired Companies, Jet, Bonobos, Mod Cloth, Moosejaw, Shoebuy and Hayneedle are really layering on the sales and profit for E-Commerce. Ridiculous moves and are not playing out as fast as the moves that Amazon makes.
Stronger focus and investment in the core business and adding people seems to pay off.
Trading at $10 down today, at $94.84 currently!!
Full Article below:
Walmart earnings miss estimates as e-commerce growth slows, shares tumble
Walmart's earnings miss analysts' expectations for the holiday period, as e-commerce growth slows to 23 percent.
Revenue and same-store sales come in better than expected.
The retailer calls for 40 percent e-commerce growth in fiscal 2019. (REALLY!!! this must include online grocery pickup.)
Walmart sees better-than-expected sales growth Walmart sees better-than-expected sales growth
17 Mins Ago | 03:19
Walmart on Tuesday reported earnings that missed analysts' expectations for the holiday period, though revenue and same-store sales surpassed predictions as the big-box retailer attracted more shoppers with its expanded merchandise mix and achieved bigger tickets.
The company's gross margins took a hit during the quarter due to promotional activity and its ongoing war with Amazon to win a larger share of the grocery and apparel industries.
"During the quarter, [Walmart] had additional EPS headwind related to some smaller unplanned items and expenses we incurred as we pulled forward initiatives in order to take advantage of a higher tax deduction," CFO Brett Biggs said.
Meanwhile, sales made on Walmart.com are slowing, igniting fears that the big-box retailer won't be able to keep pace with Amazon.com. Amazon's revenue, which includes sales from grocer Whole Foods, jumped nearly 40 percent in the latest period.
Shares of Walmart fell more than 7 percent in premarket trading Tuesday on the news.
Here's how Walmart did compared with what Wall Street was expecting, based on a Thomson Reuters survey:
Earnings per share: $1.33, adjusted, vs. $1.37 expected
Revenue: $136.3 billion vs. $134.9 billion expected
U.S. same-store sales: an increase of 2.6 percent vs. a 2.2 percent rise expected
Walmart reported net income of $2.17 billion, or 73 cents a share, compared with $3.76 billion, or $1.22 cents per share, a year earlier. Excluding one-time items, Walmart earned $1.33 a share, falling 4 cents short of analysts' estimates.
Total sales in the fourth quarter of fiscal 2018 climbed 4.1 percent from a year earlier to $136.3 billion. Traffic at U.S. stores was up 1.6 percent, and the average shopper's ticket value grew 1 percent.
Walmart's same-store sales in the U.S. were up 2.6 percent, an increase for the 14th-consecutive quarter and higher than a projected rise of 2.2 percent. Same-stores sales of its wholesale Sam's Club division were up 2.4 percent, while nine of Walmart's 11 international business segments reported same-store sales growth during the latest period.
Online sales grew just 23 percent during the period, much slower than the prior quarter's 50 percent jump. It has been more than a year since Walmart acquired Jet.com, which gave the company an initial boost.
"Jet.com complements Walmart.com nicely," CEO Doug McMillon said on a conference call with analysts and investors. "Including online grocery, it has been the key driver of our e-commerce growth and that will continue."
Walmart has set its fiscal 2019 earnings-per-share forecast at $4.75 to $5. Same-store sales at Walmart U.S. stores are expected to climb at least 2 percent, while those at Sam's Club locations could rise as much as 4 percent. E-commerce sales are forecast to grow roughly 40 percent in the coming year.
"We're going to continue expanding our e-commerce businesses as it relates to food ... with online grocery ramping up," McMillon explained. "So we think by the time we get to the end of the year, and look back at the number for the total year, [e-commerce sales] will be approximately 40 percent."
Walmart is preparing roll out a revamped website this year, with a focus on fashion and home goods. The company will partner with Lord & Taylor to sell the Hudson's Bay-owned chain's merchandise on Walmart.com, as it continues to expand its offerings on Jet.com (which include Uniquely J, Modcloth and Bonobos).
Just last week, Walmart began rolling out new apparel lines, adding to its online merchandise mix. The private labels are one way Walmart can boost its margins, when it's been forced to cut prices on many other items.
The Arkansas-based retailer has endured a number of changes of late to its structure, inventory and leadership to compete further against Amazon.
For Walmart, news of starting wage increases and bonuses in January was abruptly followed by Sam's Club store closures, followed by layoffs at its headquarters and cutbacks of store co-managers. The company is remodeling its stores across the U.S. to focus more on grocery and online order fulfillment.
As of Friday's market close, Walmart shares have risen about 51 percent from a year ago.