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Walmart (WMT) Up 10% in 3 Months: Omnichannel Efforts Aid
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Walmart Inc. (WMT - Free Report) has been one of the most talked about names in the world of retail. The supermarket giant has been benefiting from its robust omnichannel operations due to its efforts to enhance store and online experience. The company has been particularly gaining from its growing delivery services.
The increased market share in grocery continued to boost Walmart’s U.S. comp sales in the first quarter of fiscal 2024. During the quarter, the top and bottom lines increased year over year and cruised ahead of the Zacks Consensus Estimate. Also, management raised its guidance for fiscal 2024.
This Zacks Rank #2 (Buy) stock has rallied 9.8% in the past three months compared with the industry’s growth of 8.1%. The Zacks Consensus Estimate for the current fiscal-year earnings per share (EPS) has risen by a penny to $6.21 in the past 30 days.
Image Source: Zacks Investment Research
Omnichannel Card Played Well
Walmart’s e-commerce business and omnichannel penetration have been increasing. The company’s global e-commerce sales form more than 13% of its sales as of the end of fiscal 2023. The company has been taking several e-commerce initiatives, including buyouts, alliances, and improved delivery and payment systems.
Walmart is innovating in the supply chain and adding capacity and building businesses, such as Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+, Spark Delivery, Marketplace and Walmart Fulfillment Services. In the first quarter of fiscal 2024, e-commerce sales surged 26% globally on omnichannel strength, including pickup and delivery. U.S. e-commerce sales rose 27%, driven by strength in pickup & delivery and advertising.
Moreover, the International segment’s e-commerce sales ascended 25% on store-fulfilled and advertising strength. At Sam’s Club, e-commerce sales jumped 19% on strong curbside performances.
WMT has taken robust strides to strengthen its delivery arm, as evidenced by its partnership with Salesforce, the expansion of the InHome delivery service, investments in DroneUp, a pilot with HomeValet, the introduction of Carrier Pickup by FedEx, the launch of the Walmart+ membership program, drone delivery pilots in the United States with Flytrex and Zipline and a pilot with Cruise to test grocery delivery through self-driven all-electric cars.
In earlier developments, Walmart unveiled Express Delivery and joined forces with Point Pickup, Roadie and Postmates, alongside acquiring Parcel to enhance its delivery service. Furthermore, the company’s store and curbside pickup options add to customers’ convenience. As of the first quarter of fiscal 2024, Walmart U.S. had 4,600 pickup locations and more than 3,900 same-day delivery stores.
Impressive Comp Sales Picture
Walmart has a sturdy comp sales record, which is driven by its constant expansion efforts and splendid e-commerce performance. The retail biggie has been undertaking several efforts to enhance merchandise assortments. Also, the company has been focused on store remodeling to upgrade them with advanced in-store and digital innovations. WMT remodeled 96 U.S. stores in the first quarter of fiscal 2024. Walmart is also gaining from its compelling pricing strategy, which helps it draw customers.
U.S. comp sales, excluding fuel in the first quarter, were mainly driven by strength in food categories, the solid sales of private brands, an elevated average ticket and increased store transactions. The segment continued to see an increased market share in grocery. E-commerce boosted comps by 270 bps. Sam’s Club’s comp sales, excluding fuel, grew 7%. Comp sales saw strength across most categories, mainly led by food and consumables.
Future Looks Bright
For fiscal 2024, Walmart now expects consolidated net sales growth of nearly 3.5% at constant currency or cc compared with the previous view of 2.5-3% growth. Management now envisions an adjusted EPS in the band of $6.10-$6.20, up from the earlier projected range of $5.90-$6.05. For the second quarter of fiscal 2024, Walmart expects consolidated net sales growth of around 4% at cc.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year EPS suggests a considerable increase from the year-ago reported number.
The TJX Companies (TJX - Free Report) , an off-price retailer, currently carries a Zacks Rank #2. TJX has a trailing four-quarter earnings surprise of 4.4%, on average.
The Zacks Consensus Estimate for The TJX Companies’ current fiscal-year earnings suggests growth of 14.5% from the year-ago reported figure.
Urban Outfitters (URBN - Free Report) , which engages in the retail and wholesale of general consumer products, currently carries a Zacks Rank #2. URBN has a trailing four-quarter earnings surprise of 12.2%, on average.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings suggests growth of 57.1% from the year-ago reported number.
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Walmart (WMT) Up 10% in 3 Months: Omnichannel Efforts Aid
Walmart Inc. (WMT - Free Report) has been one of the most talked about names in the world of retail. The supermarket giant has been benefiting from its robust omnichannel operations due to its efforts to enhance store and online experience. The company has been particularly gaining from its growing delivery services.
The increased market share in grocery continued to boost Walmart’s U.S. comp sales in the first quarter of fiscal 2024. During the quarter, the top and bottom lines increased year over year and cruised ahead of the Zacks Consensus Estimate. Also, management raised its guidance for fiscal 2024.
This Zacks Rank #2 (Buy) stock has rallied 9.8% in the past three months compared with the industry’s growth of 8.1%. The Zacks Consensus Estimate for the current fiscal-year earnings per share (EPS) has risen by a penny to $6.21 in the past 30 days.
Image Source: Zacks Investment Research
Omnichannel Card Played Well
Walmart’s e-commerce business and omnichannel penetration have been increasing. The company’s global e-commerce sales form more than 13% of its sales as of the end of fiscal 2023. The company has been taking several e-commerce initiatives, including buyouts, alliances, and improved delivery and payment systems.
Walmart is innovating in the supply chain and adding capacity and building businesses, such as Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+, Spark Delivery, Marketplace and Walmart Fulfillment Services. In the first quarter of fiscal 2024, e-commerce sales surged 26% globally on omnichannel strength, including pickup and delivery. U.S. e-commerce sales rose 27%, driven by strength in pickup & delivery and advertising.
Moreover, the International segment’s e-commerce sales ascended 25% on store-fulfilled and advertising strength. At Sam’s Club, e-commerce sales jumped 19% on strong curbside performances.
WMT has taken robust strides to strengthen its delivery arm, as evidenced by its partnership with Salesforce, the expansion of the InHome delivery service, investments in DroneUp, a pilot with HomeValet, the introduction of Carrier Pickup by FedEx, the launch of the Walmart+ membership program, drone delivery pilots in the United States with Flytrex and Zipline and a pilot with Cruise to test grocery delivery through self-driven all-electric cars.
In earlier developments, Walmart unveiled Express Delivery and joined forces with Point Pickup, Roadie and Postmates, alongside acquiring Parcel to enhance its delivery service. Furthermore, the company’s store and curbside pickup options add to customers’ convenience. As of the first quarter of fiscal 2024, Walmart U.S. had 4,600 pickup locations and more than 3,900 same-day delivery stores.
Impressive Comp Sales Picture
Walmart has a sturdy comp sales record, which is driven by its constant expansion efforts and splendid e-commerce performance. The retail biggie has been undertaking several efforts to enhance merchandise assortments. Also, the company has been focused on store remodeling to upgrade them with advanced in-store and digital innovations. WMT remodeled 96 U.S. stores in the first quarter of fiscal 2024. Walmart is also gaining from its compelling pricing strategy, which helps it draw customers.
U.S. comp sales, excluding fuel in the first quarter, were mainly driven by strength in food categories, the solid sales of private brands, an elevated average ticket and increased store transactions. The segment continued to see an increased market share in grocery. E-commerce boosted comps by 270 bps. Sam’s Club’s comp sales, excluding fuel, grew 7%. Comp sales saw strength across most categories, mainly led by food and consumables.
Future Looks Bright
For fiscal 2024, Walmart now expects consolidated net sales growth of nearly 3.5% at constant currency or cc compared with the previous view of 2.5-3% growth. Management now envisions an adjusted EPS in the band of $6.10-$6.20, up from the earlier projected range of $5.90-$6.05. For the second quarter of fiscal 2024, Walmart expects consolidated net sales growth of around 4% at cc.
Other Promising Stocks
Abercrombie & Fitch (ANF - Free Report) , which operates as a specialty retailer, currently sports a Zacks Rank #1 (Strong Buy). ANF has a trailing four-quarter earnings surprise of 480.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year EPS suggests a considerable increase from the year-ago reported number.
The TJX Companies (TJX - Free Report) , an off-price retailer, currently carries a Zacks Rank #2. TJX has a trailing four-quarter earnings surprise of 4.4%, on average.
The Zacks Consensus Estimate for The TJX Companies’ current fiscal-year earnings suggests growth of 14.5% from the year-ago reported figure.
Urban Outfitters (URBN - Free Report) , which engages in the retail and wholesale of general consumer products, currently carries a Zacks Rank #2. URBN has a trailing four-quarter earnings surprise of 12.2%, on average.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings suggests growth of 57.1% from the year-ago reported number.