Walmart Inc. (NYSE: WMT) shares jumped more than 9% on Thursday as the Company posted the strongest growth in more than a decade, boosted by grocery, apparel and seasonal
The retailer said same-store sales in the U.S. increased 4.5% in the second quarter, driven by the strong performance of grocery, apparel and seasonal.
Total revenue rose 3.8% to USD 128 Billion during the quarter. Q2 GAAP net loss was 0.29 cents per share. Excluding certain items, the Company earned USD 1.29 per share.
Analysts surveyed by Thomson Reuters had estimated adjusted earnings of USD 1.29 per share on revenue of USD 125.97 Billion.
The better-than-expected financial results were also boosted by robust online sales growth. The Company said U.S. online sales jumped e-commerce net sales jumped 40% during the quarter, up from 33% increase in the first quarter.
"Thanks to the hard work of our associates, we had a great quarter with strong results and momentum across the business. We’re pleased with how customers are responding to the way we're leveraging stores and eCommerce to make shopping faster and more convenient. We're continuing to aggressively roll out grocery pickup and delivery in the U.S., and we recently announced expanded omni-channel initiatives in China and Mexico. Customers have choices and we're making it easier than ever for them to choose Walmart." Doug McMillon President and CEO, Walmart.
Walmart shares jumped 9.37% to USD 98.67 per share in the early trading on Thursday.
Walmart had been investing heavily in e-commerce business in the recent years, in order to compete with e-commerce giant Amazon.com Inc. (NASDAQ: AMZN). It also invested in India e-commerce player Flipkart.