Wow. Walmart’s new earnings report crushed expectations. This is while other retailers, like Target, suffered. (Target did have some image problems). Walmart is not just America’s biggest retailer. It is also the best run. (These companies control more than half of their industries.)
[in-text-ad]
Walmart’s revenue was $162 billion (up 6% from the same quarter a year ago), compared to expectations of $160 billion. Earnings totaled $1.88 per share, compared to expectations of $1.62. E-commerce rose 24%, which is Amazon-like. If any company has given Amazon a run for its money, it is Walmart.
In the United States, the measure most investors look at, same-store sales, rose 6.4%.
CEO Doug McMillon commented: “We had another strong quarter. Around the world, our customers and members are prioritizing value and convenience. They’re shopping with us across channels.” Mark that down as an understatement.
Walmart’s earnings may point to one of two things, and perhaps both. Because Walmart says it has locations within 10 miles of 90% of the U.S. population, it could be a proxy for a strong consumer economy. Or, Walmart could simply be better run. Either way, the company has tailwinds headed into the critical year-end season.
Walmart did not even exist in 1962. J.C. Penney and Sears dominated the retail landscape in the United States. Both of the companies are gone, or nearly so. Neither could adapt to the Walmart big-box retailer strategy, which was driven by huge stores, based on square footage, and remarkably low prices, driven by expert inventory acquisition and the willingness to accept low margins.
Walmart has had competition, but none has come close to challenging it. In particular, Target and Costco have made runs. Walmart’s armor was not dented by either.
Amazon hurt Walmart with its early e-commerce lead, which it still has. But Walmart is on its way to challenging even America’s largest online retailer.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.