The pandemic lockdown has been good for Walmart Inc. (NYSE:WMT)
The world’s largest bricks-and-mortar retailer posted stronger than expected quarterly sales as people stockpiled products during the coronavirus-related lockdown.
Comparable-store sales, a key retail metric, increased 10% for U.S. Walmart stores in the period, compared with the 8.6% estimate compiled by Consensus Metrix. That’s the fastest pace of growth in almost two decades.
Walmart also reported robust online sales. Its e-commerce sales rose 74% in the quarter, compared with the average analyst estimate of 51% growth. To counter rival Amazon.com Inc.’s (NASDAQ:AMZN) popular Prime delivery service, the company is rolling out a subscription-based grocery delivery offering and recently introduced a two-hour home delivery service in some U.S. markets.
Uncertainty surrounding the length of the coronavirus’s impact prompted the retailer to withdraw its full-year guidance, which it provided three months ago. However, Walmart said in a news release that its “business fundamentals are strong.” Walmart incurred about $1.1 billion U.S. in additional expenses related to the coronavirus pandemic -- from worker bonuses to additional cleaning and the purchase of protective gear.
Walmart shares rose on the news, closing Tuesday just under $125 per share. Walmart shares are up 7.5% year-to-date.
