Walmart Sales Rise Even as Pandemic Wanes

By Sarah Nassauer 

Walmart Inc.'s sales continued to rise during the spring quarter though at a slower pace than earlier in the Covid-19 outbreak, as some consumers returned to more typical shopping patterns as the pandemic wanes.

Comparable sales, those from U.S. stores and digital channels operating for at least 12 months, rose 6% in the quarter ended April 30 compared with the same period last year. U.S. e-commerce sales rose 37%. It was the slowest online growth for Walmart since the coronavirus outbreak in early 2020 upended the retail landscape.

Sales of nonfood items jumped more than 20% in the quarter, aided by government stimulus checks as customers splurged on recreation, home improvement and apparel items, the company said. Grocery sales fell compared with the same quarter last year when shoppers hoarded some goods such as food and toilet paper, but the retail behemoth gained grocery share versus last year, Walmart said.

"Our optimism is higher than it was at the beginning of the year. In the U.S., customers clearly want to get out and shop," CEO Doug McMillon said in a release. "Stimulus in the U.S. had an impact, and the second half has more uncertainty than a typical year. We anticipate continued pent-up demand throughout 2021."

During the same quarter last year, Walmart's U.S. comparable sales grew 10% and e-commerce jumped 74% as consumers stockpiled.

Overall, Walmart's global revenue rose 2.7% to $138.3 billion in the April-ended quarter. Net income decreased 32% to $2.7 billion, including losses on its sale of its U.K. and Japanese units and adjustments to the value of its stake in Chinese e-commerce company JD.com Inc.

Shares of Walmart rose 3% in early trading.

Write to Sarah Nassauer at [e-mail]

(END) Dow Jones Newswires

May 18, 2021 08:06 ET (12:06 GMT)

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