Walmart stocks rise after reporting exceptional results comparative to last year’s previous earnings impressing traders last week.
After Wednesday’s close last week, shares were up 7.2% on year to date after rising 18.2% in over the past 12 months. This shows the retailer giant’s best growth in first-quarter same-store sales in over nine years with sales at stores open at least a year rising to 3.4%.
Much of its recent success could be credited to its venture on e-commerce where the company is currently seen to compete with other giants like Amazon for a share of the market. Analysts see the decision to move to e-commerce as vital for the growth of the company, and if executed correctly was predicted as early as January this year could raise company stocks by up to 50%.
Other strategic benchmarks the company has taken to ensure business growth includes curbside pickups catering to on-the-go customers, and its partnership with Affirm to, for the first time, offer customers point-of-sale loans.
Analysts are optimistic about the company’s future, leveraging on their ability to follow through with the above strategies, and playing off of offering the right conveniences for their customers. Analysts are positive despite the minor setback the company has had with a failed deal to merge their British grocery units with UK company J. Sainsbury. Exploring opportunities to offer CBD products are also in the company’s pipeline.
Management’s current strategies helped bolster Walmart’s standing with stock gains of 3.7% to $103.54 in the morning of last weeks trading, Thursday, surpassing trader expectations. Comparable-store sales growth exceeded 3% for a fourth straight quarter, while e-commerce climbed 37% exceeding the company’s full-year target of 35%. While gross margins declined, it was smaller than what analysts have predicted. Walmart’s international business sales also rose by 1.2%.