Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$WMT has promoted Judith McKenna to the posts of President and CEO of Walmart International, effective February 1, 2018. She succeeds David Cheesewright who has decided to retire. McKenna, who currently serves as EVP and CEO of Walmart US, will report to President and CEO Doug McMillon. McKenna had joined Walmart in 1996 as CEO of its UK division.
$HRB and $WMT announced that $HRB will be the exclusive DIY desktop tax software provider available at Walmart stores nationwide, and sold directly by Walmart on walmart.com. This partnership makes the DIY products more convenient for clients to purchase, and prepare their taxes and get their maximum tax refund.
$WMT division Sam’s Club has revealed plans to convert around 12 of its closed stores into eCommerce fulfillment centers. The first center will be located in Memphis. The rest of the 63 stores identified for closure will be wound up over the coming weeks. The company plans to place its associates affected by the initiative to the nearby locations.
During the Thanksgiving weekend, a large number of consumers turned to their smartphones and computer screens for their shopping needs. Amazon, as expected, gobbled up a lion's share of the online transactions. Lets take a look at the other retailers that made a killing last weekend. $TGT $WMT $AMZN $KSS $M $COST $BBY $GME $HD $LOW
$WMT is in the process of integrating technology into Sam’s Club stores. In Canada, recent investments in price are contributing to market share gains. Going forward, top line growth will be led more by comp. sales and eCommerce than new store openings. The focus of capital allocation will be eCommerce, technology, supply chain and store remodels.
After reporting better than expected earnings numbers in 3Q18, $WMT said it is in the process of testing its automated pickup towers and same-day grocery delivery system. The company intends to expand its online grocery facility to 1,000 more locations next year. In the most recent quarter, store operations were affected by hurricane in some areas.
With the holiday season around the corner, $WMT is expecting same store sales of the Walmart U.S. and Sam’s Club divisions to grow between 1.5% and 2% in 4Q18, excluding fuel. For fiscal 2018, the company is looking for GAAP EPS in the range of $3.84 to $3.92, and non-GAAP earnings between $4.38 per share and $4.46 per share.
Driving $WMT’s topline growth in 3Q18, sales of the Walmart US division moved up 4% YoY to $78Bil, helped mainly by a 50% growth in eCommerce sales. US comparable sales were higher by 2.7%. Sales of the Walmart International and Sam’s Club segments also increased about 4% and came in at $29Bil and $15Bil, respectively.
A 3% gain in comparable sales did not help $WMT’s bottomline performance in 3Q18, when earnings fell more than 40% to $1.7Bil or $0.58 per share. Non-GAAP earnings rose 2% to $1 per share, exceeding expectations. Net sales of the retail giant, which is fast adopting the omnichannel model, rose 4% to $122Bil, helped by strong eCommerce performance.
Store operator $WMT said it expects FY18 GAAP EPS to be in the range of $4.18 to $4.28, and sees adjusted EPS between $4.30 and $4.40. For FY19, the company expects adjusted earnings to grow 5% YoY, supported by a 3% gain in net sales. Walmart plans to add 1,000 online grocery locations. Capital expenditure is forecast at $11Bil for FY18 and FY19.
In a historic partnership, $WMT has joined hands with $GOOGL $GOOG to offer voice-activated shopping experience to customers. Under the partnership – a strategy clearly aimed at countering the dominance of $AMZN in the online marketplace – thousands of items will be made available for voice-shopping through Google Assistant, beginning next month.
$WMT said its 2Q18 EPS was positively impacted by 5 cents from the sale of the Suburbia business in Mexico. Continued investment in e-commerce and technology resulted in a 13 basis points increase in operating expense, as a percentage of sales, during the quarter. The company expects comparable store sales to grow between 1.5% and 2% in 3Q18.
$WMT said recent acquisitions, including Bonobos, further enhanced its assortment and provided critical category expertise. The company intends to expand its online grocery platform to more locations across the world. By the end of the year, 200 training academies for store associates are expected to start operating.
Net sales of $WMT’s US division advanced 3.3% YoY to $78.7Bil in 2Q18. Sales of Sam’s Club increased 2.3% to $14.9Bil, while those of Walmart International decreased 1% $28.3Bil. Comparable stores sales of Walmart US, with fuel, rose 1.9% in 2Q18, and comp sales of Sam’s Club gained 1.4%.