WASHINGTON: Retail giant Walmart saw profits surge in the latest quarter on an explosion in online sales and a boost from Indian retailer Flipkart, according to results released Thursday.
“The sales environment in the US continues to be positive, while internationally its softer and we’re responding appropriately,” Walmart chief Doug McMillon said in a statement.
The world’s largest retailer’s net income jumped more than 92 percent to nearly $3.3 billion in the three months ended October 31 compared to the same quarter a year earlier, the company reported.
Total revenue rose 2.5 percent or $3.1 billion, to $128 billion.
This resulted in adjusted earnings per share, a key US benchmark, of $1.16, well above the median estimate of $1.09 expected by analysts.
The company now projects the full year results to be “up slightly” — a modest improvement over its previous outlook.
US ecommerce sales surged 41 percent, including a big jump in online grocery sales.
US sales rose at Walmart and Sam’s Club, despite some impact from reduced tobacco sales, and the company saw solid performance in China and at Walmex in Mexico.
Walmart Chief Financial Officer Brett Biggs said the company is “continuing to monitor the ongoing tariff discussions and are hopeful that an overarching long-term agreement can be reached.”
But sales in Britain were soft due to concerns over Brexit, while business in Chile has been impacted by civil unrest there forcing many stores to close.
The chain marked the first anniversary of the acquisition of Flipkart, which boosted international sales.
McMillon pointed to good customer traffic in US stores, but said the retailer needs to do a better job selling general merchandise online
“Looking ahead, we’re prepared for a good holiday season. Our integrated offering with stores and eCommerce delivers value and convenience for our customers.”