Walmart (NYSE: WMT) reported better than expected third quarter earnings as U.S. online sales surged 79% amid the ongoing pandemic. Additionally, during the third quarter, Walmart launched its Walmart+ membership delivery service which rivaled Amazons Prime’s existing operation.
“We think the service could be a game-changer for WMT, particularly given its size and scale in the U.S. grocery market, and U.S. consumers in general, eliminating the need for frequent trips to the grocery store,” said CFRA analyst Garrett Nelson in a recent note.
The retail giant noted that customers have accepted and embraced the new ways of shopping. As the global health crisis continues, people are opting to browse online for their purchases, including groceries and have them delivered straight to their home or retrieve them by curbside pickup.
The company has not provided a forecast, however CEO Doug McMillion strongly feels that online shopping will not diminish.
“We’re convinced that most of the behavior change will persist beyond the pandemic and that our combination of strong stores and emerging digital capabilities will be a winning formula,” he told investors on an earnings call. “Customers will want to be served in a variety of ways and we’re positioned to save them money, provide the variety of product choices they’re looking for, and deliver the experience they choose in the moment.”
In its third quarter report, the company highlighted earnings of USD1.34 per share in comparison to the expected USD1.18 a share. Revenue amounted to USD134.7 Billion, higher than analysts anticipated USD132.2 Billion.