Walmart Just Did Something That Amazon, Home Depot, and Target Couldn't
Investors had expected Walmart (NYSE: WMT) to report strong sales growth in its fiscal 2021 first quarter (which ended May 1) given the rush to stockpile food and other essential products in March, but the retail giant blew those expectations away.
Walmart posted comparable sales growth of 10%, with U.S. e-commerce sales jumping 74%. Sales were up at all three of its business segments, rising by about 10% at Walmart U.S. and Sam's Club and increasing 3.4% at international stores. Overall revenue rose 8.6% to $134.6 billion, topping expectations at $130.3 billion.
Like its retail peers, Walmart paid significant bonuses in the quarter to front-line employees taking on extra work and risk during the pandemic. Those cost $755 million, and the company spent another $175 million on accelerated bonuses related to attendance. As a result, gross margin fell by 66 basis points, but the company gained that back by leveraging operating expenses with its strong sales growth.
Source Fool.com
