Walmart soared more than 10% after reporting stellar earnings. The company reported it's best US comparative growth in 10 years. eCommerce sales increased in the US 40% with new website designs and grocery delivery investments paying off for the company. Walmart expects eCommerce to grow another 40% in the next year. Earnings Highlights:
- Total revenue was $128.0 billion, an increase of $4.7 billion, or 3.8%. Excluding currency, total revenue was $127.8 billion, an increase of $4.4 billion, or 3.6%.
- Walmart U.S. comp sales increased 4.5%, the strongest growth in more than ten years led by the performance of grocery, apparel and seasonal. Strong comp sales were supported by traffic and ticket growth as each exceeded 2.0%.
- Walmart U.S. omni-channel saw significant progress with an expanded online assortment, including 1,100 popular new brands. Grocery pickup is now in more than 1,800 locations, and the company is on track to reach about 40% of the U.S. population by year-end with grocery delivery.
- Sam's Club comp sales increased 5.0%, the strongest growth in six years.
- Net sales at Walmart International were $29.5 billion, an increase of 4.0%. Excluding currency, net sales were $29.2 billion, an increase of 3.1%. Comp sales were positive in the four largest markets.
- Adjusted EPS excludes the impact of three items:
- Charge of $1.51 related to the sale of a majority stake in Walmart Brazil
- Negative impact of $0.04 due to an adjustment in the provisional amount related to Tax Reform
- Unrealized loss of $0.03 on the company's equity investment in JD.com
Guidance for Fiscal Year 2019:
- Consolidated net sales: About 2% in constant currency
- Comp sales (ex. fuel): Walmart U.S.: around +3%, Sam's Club: around +3%
- Walmart U.S. eCommerce net sales: Approximately 40%
- Walmart International net sales: About 0.7% in constant currency
- Consolidated operating income, adjusted: Flat to slight percentage decrease
- Consolidated operating income margin: Around 4.4% in constant currency
- GAAP EPS: $2.90 to $3.05
- Adjusted EPS: $4.90 to $5.05
- Effective tax rate: 31% - 33%