Page 25 - ARUBA TODAY

BUSINESS Thursday 21 February 2019
A25

Walmart flexes in the fourth quarter, beats all expectations

By ANNE D’INNOCENZIO vious period. Walmart’s
Associated Press online U.S. sales are still a
NEW YORK (AP) — Walmart fraction of Amazon’s on-
defied a gloomy govern- line global merchandise
ment retail sales report for empire, which reached
December, delivering fiscal $122.98 billion last year.
fourth-quarter profits and Walmart’s U.S. online sales
sales that beat Wall Street for the first nine months of
expectations. its latest fiscal year reached
The world’s largest retailer $10.2 billion. The discounter
also enjoyed another quar- hasn’t yet disclosed the
ter of surging e-commerce year-end figures. But it has
sales during the critical holi- rapidly expanded its servic-
day period as it expanded es online fast.
its online assortment and “Pleasingly, Walmart is suc-
services. Shares moved cessfully broadening its
higher in afternoon trading online base of customers
Tuesday. and is now attracting both
The report provides more younger and more afflu-
evidence that Walmart’s ent demographics,” wrote
efforts to expand online Neil Saunders, managing
grocery services, including This Nov. 9, 2018, file photo shows a checkout scanner at a Walmart Supercenter in Houston. director of GlobalData Re-
curbside pickup and home Associated Press tail, a retail research firm in
delivery, are widening the case, appears to be un- we are able to react.” of products from toys to a published report. “These
gap between itself and tra- true. Walmart and other retail- groceries and electronics. are early days, but Walmart
ditional rivals while at the Walmart executives said ers are also benefiting from That helped sales at stores is now a serious contender
same time holding its own Tuesday that its customers the woes of others. Toys R open at least a year rise 4.2 in the online space and
against online leader Ama- are benefiting from a stron- Us and Bon-Ton Stores have percent at its U.S. name- presents a much more seri-
zon. ger economy. The compa- gone out of business, and sake stores, following a 3.4 ous threat to Amazon than
The strong performance ny also said that its sales got the list of casualties keeps percent pace in the fiscal it did 18 months ago.”
from the world’s largest re- a lift from the government getting longer. This week, third quarter. The figure ex- Walmart had a fourth-quar-
tailer is especially encour- issuing February checks to Payless ShoeSource began cludes sales from fuel. ter profit of $3.69 billion, or
aging after a very weak Supplementary Nutrition liquidation sales at roughly Since buying Jet.com $1.27 per share. Earnings,
December retail sales re- Assistance Program recipi- 2,500 stores in North Amer- more than two years ago, removing one-time items,
port last week from the U.S. ents early in the wake of ica. Sears is shrinking and Walmart has been expand- were $1.41 per share,
Commerce Department the government impasse. J.C. Penney is floundering. ing online by acquiring which is 8 cents better than
led many to fear that con- “The consumer still feels A diverse roster of retailers brands and adding thou- analysts had expected,
sumers had gone into hid- pretty good,” Brett Biggs, including Macy’s, Target sands of items. Walmart according to a survey by
ing. Some analysts even Walmart’s chief financial and Home Depot are slat- now offers grocery delivery Zacks Investment Research.
questioned the reliability of officer told analysts on an ed to report fiscal fourth- service at 800 stores and The Bentonville, Arkansas,
the government report. earnings call Tuesday, tick- quarter results in the next grocery pickup at 2,100 company had revenue of
The data, delayed by a ing off economic tail winds few weeks. Target had re- stores. Walmart has re- $138.79 billion, also better
government shutdown, like lower gas prices and ported strong holiday sales vamped its website with a than expected.
hinted that a volatile stock rising wages. “A number in January while several focus on fashion and home The company’s Sam’s Club
market, a government im- of things are still working. other department stores in- furnishings. That all helped division had a 3.3 percent
passe, and a trade war with We are watching, making cluding Macy’s offered dis- to drive a 43 percent in- increase in revenue at
China had taken their toll sure that we are in the right appointing results. crease in e-commerce stores opened at least a
on the American psyche. place with the customer. Walmart posted strong sales in the quarter, match- year during the fiscal fourth
That, at least in Walmart’s No matter the environment, sales across a wide range ing the pace from the pre- quarter. q