Walmart beats on earnings as online sales surge (WMT)

pulse

May 18, 2017 12:23 PM

Walmart reported first-quarter earnings and sales that topped analysts' expectations amid heavy investments to beef up its ecommerce unit.

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Walmart on Thursday reported first-quarter earnings and sales that topped analysts' expectations, boosted by strong online sales.

America's largest retailer said gross merchandise volume in its ecommerce unit — the value of everything sold online — jumped by 69% compared to the prior year.

Walmart's acquisition of Jet.com as well as smaller companies including Modcloth and Shoebuy have beefed up its online results. With online sales growing at the fastest pace in at least five years, according to Bloomberg, Walmart appears to be gaining ground in its efforts to fight the threat from Amazon.

Adjusted earnings per share came in at $1, Walmart said in a statement, beating analysts' forecast for $0.96 according to Bloomberg. Sales at stores open for at least one year rose by 1.4%, ahead of the forecast for 1.3%.

Walmart said grocery sales improved from the fourth quarter, offsetting a decline in general merchandise sales that was partly because some tax refunds were delayed.

The retailer's price war with Kroger and other competitors pared down its gross margin, which was flat.

Walmart's stock fell by as much as 1.5% in premarket trading. The company said it expects second-quarter EPS at between $1 and $1.08, excluding a $0.05 benefit, and missed expectations.

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