Markets

What's Good in Wal-Mart Q1 Earnings

What's Good in Wal-Mart Q1 Earnings

That's a rare bright spot in a largely gloomy retail environment in which retailers like Macy's and Target saw declines in comparable sales.

Walmart U.S. e-commerce chief Marc Lore said the company is seeing "nice growth" from its latest offer of discounts on some web orders that are picked up in store. The company said most of the growth was from its existing online operations rather than from acquisitions.

"This is extraordinary growth, and we're pleased with the traction we're generating across our e-commerce offerings", said Brett Biggs, Wal-Mart's executive vice president and chief financial officer.

Wal-Mart, like other traditional retailers, has played catch-up to Amazon and other internet companies. It has retooled how it operates online and accelerated that shift by buying already successful online operators. It generated $5.4 billion in operating cash flow and returned $3.7 billion capital to shareholders through dividends and stock buybacks. Wal-Mart Stores Inc has a 12-month low of $65.28 and a 12-month high of $77.66. Although this includes the contribution from the acquired businesses, it nonetheless shows that Walmart is growing its digital market share at a significant pace.

In January of previous year, Walmart upped its minimum wage to $10 per hour for 1.2 million workers. Wal-Mart is working to accelerate the integration between Wal-Mart.com and Jet.com, and trying to take advantage of its scale in areas like shipping. Walmart reported big dollar earnings in its 2017 Q1 after successes in e-commerce acquisitions and investments.

"The majority of our growth is and will be organic", said McMillon. "We remain confident in our strategy and are moving with speed to deliver value to our customers, associates and shareholders". With this new app, the time to complete her work has now been reduced, improving her productivity and giving her more time to interact with customers.

Amazon Prime costs $99 a year, but comes with services like streaming music and video. Amazon has lowered the free-shipping minimum purchase price for nonmembers. This could signal that the company is serious in weaning away customers from online retailer Amazon.com, Inc.

Growth at Wal-Mart's brick-and-mortar stores was more measured, though it still outpaced estimates.

Wal-Mart is also launching an incubator lab focused on projects in robotics, virtual and augmented reality, and artificial intelligence.

Wal-Mart's online expansion hasn't come cheap. It has invested $2.7 billion in higher wages and training for workers to decrease turnover and make the shopping experience more appealing. Each week, over 260 million customers and members visit our 11,723 stores under 59 banners in 28 countries and e-commerce websites in 11 countries.

L Brands Inc (NYSE: LB) reported upbeat earnings for its first quarter and raised its FY17 outlook. Cisco also announced plans to cut an additional 1,100 jobs. It forecast earnings per share of $1 to $1.08, against market expectations of $1.07. Revenue was $117.54 billion, just shy of the $117.63 billion analysts had expected. Analysts had estimated 96 cents.

For the quarter ended April 29, Target earned $681 million or $1.23 per share.

At time of writing this, Wal-Mart shares are trading down 0.16 percent in pre-market.

In related news, major shareholder Jim C. Walton sold 3,000,000 shares of the business's stock in a transaction dated Thursday, March 16th.


  • Putin: 'Political schizophrenia' developing in US

    Putin: 'Political schizophrenia' developing in US

    She said the Relationship with The US "is the most important defense and security relationship that we have around the world". US President Donald Trump meets with Russian Foreign Minister Sergey Lavrov, left, next to Russian Ambassador to the U.S.
    Tillis says he's 'fine' after race collapse

    Tillis says he's 'fine' after race collapse

    Roy Cooper of North Carolina, a Democrat, tweeted well wishes to Tillis. "See you back on the Hill", the first-term senator said. When not in Washington , Tillis lives north of Charlotte and is a former speaker of the North Carolina House of Representatives.
    IPL 2017: Match Preview: Qualifier 1 - MI V/s RPS

    IPL 2017: Match Preview: Qualifier 1 - MI V/s RPS

    The team to lose the match will play Qualifier 2 with the winning team of Eliminator. It is hard for the RPS to bring any new player at this end of series for finals.
  • Three Illini football players arrested for armed robbery

    Three Illini football players arrested for armed robbery

    According to police reports, the three Illini football players entered a dormitory room at 3 a.m., at Bromley Hall on campus. Watkins, 18, were the three players arrested in connection with the incident, which took place early on Wednesday morning.
    New FBI boss could be revealed next week

    New FBI boss could be revealed next week

    Mike Rogers , R-Mich., who chaired the House Intelligence Committee while in Congress, also met with Sessions and Rosenstein. Trump's visible anger and erratic tweets prompted a reporter to ask Spicer on Friday if the president was "out of control".
    IOC Begins Paris 2024 Evaluation -- Photodesk

    IOC Begins Paris 2024 Evaluation -- Photodesk

    Estanguet is also now the favourite to replace Angela Ruggiero as chair of the IOC Athletes' Commission after her term ends next February.
  • ESPN ending 'Mike & Mike' radio show after 17 years

    ESPN ending 'Mike & Mike' radio show after 17 years

    According to ESPN, the new show will have "several full-time co-hosts and a rotation of various guests and expert contributors". That time slot opened up when ESPN promoted "His & Hers" co-hosts Michael Smith and Jemele Hill left to lead the 6 p.m.

    Would Trump request to end Flynn probe have broken law?

    But barring recordings, a memo still becomes a case of "he said, she said", said former prosecutor Jonathan Lopez. Testifying before Congress is familiar to Comey, a former Justice Department official in the George W.
    Lalu's benami property case: IT raids 22 locations

    Lalu's benami property case: IT raids 22 locations

    Last week, he said that "no one knows whether Lalu Prasad would be in jail or outside before the August 27 rally of RJD". However, Lalu's ally JD-U and Congress have adopted a wait and watch stand on the latest developments.
  • Speaker Paul Ryan: 'We Need the Facts' on James Comey's Firing

    Trump left the White House Wednesday morning to head to CT where he was scheduled to give the commencement address at the U.S. Asked if he had confidence in the president as he left the press conference, the House Speaker said "I do".
    Syrian Opposition at Geneva Peace Talks: 'We Will Not Walk Away'

    Syrian Opposition at Geneva Peace Talks: 'We Will Not Walk Away'

    "In fact, it is the most amount of skepticism that I have heard from diplomats involved in this process", he said. President Bashar Assad's government has denied the US allegations.
    Brexit talks to start hours after election, says EU negotiator Michel Barnier

    Brexit talks to start hours after election, says EU negotiator Michel Barnier

    Mrs May and her ministerial colleagues have repeatedly claimed no deal is better than a bad deal from the UK's point of view. We can't spend two years with this farce, ' Farage told the legislature in Strasbourg.