Walmart sales are boosted by U.S. stimulus business and economic news

Walmart sales are boosted by U.S. stimulus business and economic news



Wal-Mart reported better-than-expected performance in the first three months of this year because Americans’ attention to stimulus checks has boosted sales.

Walmart (Walmart) raised its annual earnings forecast on Tuesday, after the company announced better-than-expected first-quarter results, showing that shoppers have a dazzling array of clothing, lawn and garden supplies stimulated by the US government’s stimulus spending.

Sales of stores that have been open for at least one year have increased by 6%, compared with 8.6% in the fourth quarter. However, when Wal-Mart became the lifeline of the coronavirus pandemic for millions of people, this number exceeded the peak of 10% last year. Online sales increased by 37%, down from 69% in the fourth quarter.

CEO Doug McMillon said: “We are more optimistic than at the beginning of the year.” “In the United States, customers obviously want to go shopping.”

Macmillan said that the government’s stimulus funds boosted sales, and as the country got rid of the pandemic, demand was suppressed a lot. As people go out for more activities, Wal-Mart said that as shoppers take off their masks, sales of travel goods and tooth whiteners are soaring. The company also said that transactions in its stores have risen for the first time in a year.

The stock rose nearly 4%, or $5.37, to $144.78 in early trading on Wall Street.

In the past year, Wal-Mart has further promoted fast and convenient delivery, and sales of its stores have increased, so many other retailers have been forced to close during the lock-up period. Even the large-scale infrastructure that Wal-Mart has built in recent years has been squeezed by massive orders from thousands of people living at home.

The company increased its spending by $14 billion to accelerate its distribution network, and in February said it would increase its average hourly wage to more than $15 an hour, or an increase of $1.

Amazon and Target have increased the hourly wages of all workers to $15.

For the three months ended April 30, Wal-Mart’s first-quarter net profit was US$2.73 billion, or 97 cents per share. In the same period last year, Wal-Mart’s net profit was US$3.99 billion, or US$1.40 per share. Adjusted earnings per share were $1.69. According to FactSet’s data, analysts’ average expectation is $1.21 per share.

Sales increased by 2.6% to 137.16 billion U.S. dollars. Analysts had previously expected it to be 132.16 billion U.S. dollars.

Wal-Mart said it now expects revenue to grow in the high single digits. Previously, the company had expected a slight decline in profit for the year.

Wal-Mart still faces many challenges. Analysts believe that the rate of registration for the Wal-Mart Plus membership system is slowing, and the plan makes shoppers spend $98 a year, or $12.95 a month. The retailer hopes this will become a major competitor to Amazon’s large-scale Prime free shipping program launched 15 years ago. Wal-Mart Plus provides members with 160,000 items delivered on the same day, some gas stations can enjoy fuel discounts, and have the opportunity to check out at Wal-Mart stores without waiting for registration.

McMillon told analysts on Tuesday’s earnings conference call that it is the pick-up and drop-off from the grocery store supercenter that drives the sales membership, and capacity is an issue. He said that the focus now is on the quality of the experience, not the quantity.

Last Friday, Walmart Inc. said that unless state or local laws provide otherwise, shoppers or workers who have been vaccinated against the coronavirus in stores will no longer be required to wear masks. If they are vaccinated, it will provide workers with a $75 bonus.


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