Walmart beats as online sales surge
- Walmart posted strong fourth-quarter results Tuesday, beating on both the top and bottom lines and on same-store sales.
- Online sales surged 40% for the 2019 fiscal year.
- The retail giant reiterated its fiscal-year 2020 forecast.
- Walmart shares were up 4.6% following the results.
- Watch Walmart trade live.
Walmart on Tuesday blew past fourth-quarter expectations, posting strong top- and bottom-line results and same-store sales.
The retail giant earned an adjusted $1.41 a share on revenue of $138.8 billion, beating the $1.34 and $138.7 billion that analysts surveyed by Bloomberg were expecting. The results excluded a charge of $0.17 a share attributed to the new tax law and an unrealized gain of $0.03 a share on Walmart's equity investment in JD.com.
Same-store sales excluding fuel were also strong, coming in at up 4.2% versus the 3.2% gain that was anticipated.
For fiscal-year 2019, Walmart earned an adjusted $4.91 a share as revenue increased 2.8% year-over-year to $514.4 billion. Comparable sales excluding fuel were up 3.6%. The retailer said e-commerce sales surged by 40% in the fiscal year.
"Progress on initiatives to accelerate growth, along with a favorable economic environment, helped us deliver strong comp sales and gain market share," Walmart's president and CEO, Doug McMillon, said in the press release.
"We're excited about the work we're doing to reach customers in a more digitally connected way. Our commitment to the customer is clear - we'll be there when, where, and how they want to shop and deliver new, convenient experiences that are uniquely Walmart."
Looking ahead, Walmart reiterated its 2020 full-year guidance. The retailer sees consolidated net sales growth of at least 3% on a constant-currency basis and adjusted earnings per share declining by a low-single-digit percentage range. Excluding Flipkart, Walmart anticipates EPS will grow by a low to mid single-digit percentage range compared with FY19. It expects e-commerce sales to grow by about 35% during the fiscal year.
Walmart shares were up 4.6% following Tuesday's results. They were up 7.4% this year through Friday.