Walmart (NYSE:WMT) shares jumped at the open Tuesday after the retailer said its e-commerce sales grew significantly as customers bought groceries, cleaning items and other essentials online during the pandemic.
The big-box retailer’s e-commerce sales in the U.S. shot up by 74%, and same-store sales grew by 10% in the first quarter.
But like many other companies, Walmart said the virus has created "unprecedented variability" in the economy, and it withdrew its financial outlook. It also said it was phasing out the Jet.com brand, the e-commerce company it bought for $3.3 billion in 2016, saying the acquisition fueled its e-commerce strategy.
In media interviews, Walmart CFO Brett Biggs said “it felt like several different quarters within a quarter, particularly in U.S.” He said the retailer saw a stockpiling surge in March, with a 300% peak in pickup and delivery.
The retail giant reported net income rose to $3.99 billion, or $1.40 per share, from $3.84 billion, or $1.33 cents a share, a year earlier.
Excluding items, Walmart earned $1.18 per share. Analysts were expecting Walmart would earn $1.12 per share.
Total revenues grew by 8.6% to $134.62 billion from $123.9 billion a year earlier, exceeding Wall Street’s expectations of $132.80 billion.
As Walmart’s sales grew during the pandemic, so did its costs. Biggs said it spent nearly $900 million on expenses related to COVID-19. About three-fourths of that went to employee bonuses and expanded benefits, he said.
The company has had two rounds of special bonuses for employees and accelerated the payout of first-quarter bonuses.
Shares vaulted $1.48, or 1.2%, to $129.14.
