I view Walmart’s results and comments as particularly noteworthy given their retail prominence and focus on low prices. I have previously commented on their quarterly management call comments; these previous posts are found under the “paycheck to paycheck” label.
Here are various excerpts that I find most notable:
comments from Doug McMillon, President and CEO, page 4, wrt Walmart U.S.:
We had a strong quarter with comp-sales growth of 1.8 percent andcomments from Brett Biggs, EVP & CFO, page 8:
comp-traffic growth of 1.3 percent. It’s exciting that sales growth is coming
from across the business-- including stores, e-commerce and a
combination of both.
Walmart U.S. eCommerce again performed very well on the toplinecomments from Brett Biggs, EVP & CFO, page 9, wrt Walmart U.S.:
as GMV grew 67 percent and sales increased 60 percent, including
acquisitions. The majority of this growth was organic through
Walmart.com, including Online Grocery, which is growing quickly. We’re
delivering growth through an improved customer value proposition that
includes free two-day shipping on millions of items and Easy Reorder, as
well as an expanded assortment, now with more than 67 million SKUs – an
increase of more than 30 percent from the first quarter. With Easy
Reorder, we’re integrating both in-store and online purchases to provide
customers with a single spot to view and repurchase the items they buy
most frequently. Initiatives like these, along with everyday low prices, are
the reasons why customers are choosing Walmart in greater numbers. As
a reminder, we’ll begin to lap the Jet.com acquisition in the third quarter.
Gross margin rate declined 5 basis points in the quarter. Savings_____
from procuring merchandise benefited the margin rate but was more than
offset by the mix effects from our growing e-commerce business, as well as
continued investments in price.
The Special Note summarizes my overall thoughts about our economic situation
SPX at 2468.11 as this post is written
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