Walmart's Online Sales Come Under Pressure

Walmart's Online Sales Come Under Pressure

Walmart's poor quarterly results are the latest evidence of how even the giants of retail are under siege from Amazon.

Walmart Inc. reported profit-margin pressure and a sharp slowdown in e-commerce sales in the holiday season following three quarters of booming growth, a stumble that pushed the stock down more than 9% and chipped off some $29 billion in market capitalization. Since then, Walmart is starting to shift marketing spend on the millennial-centric upstart to reach younger shoppers directly via Walmart.com, the company explained Tuesday.

Bond prices fell. The yield on the 10-year Treasury rose to 2.89 percent.

The Dow Jones Industrial Average fell 145.61 points, or 0.58 percent, to 25,073.77. This despite it making huge investments in both its digital business and its stores, where it has taken steps like lowering prices. For instance, in the third quarter of the company's fiscal year 2018, Walmart U.S.' e-commerce business delivered net sales and gross merchandise volume growth of 50% and 54%, respectively. It noted last year's results got a big boost from its acquisition of online retailer Jet.com.

The company said it failed to keep some basic items in stock over the holidays as it tried to manage a higher demand for things like TVs and toys.

Overall, we finished the year with e-commerce sales growth of more than 40%, so we feel better about the year than the quarter. And Albertsons Cos. said it has agreed to acquire Rite Aid Corp.

Since buying Jet.com for more than $3 billion a year and a half ago, Walmart has added online services, bought brands like Bonobos and ModCloth, and vastly expanded the number of items available online.

Later this spring, Walmart will reveal a completely revamped website with a focus on fashion and home goods. It has teamed up with Lord & Taylor to create dedicated space on its site.

Arsenal seal record shirt deal
The airline plays a significant role in our ambitions to extend our influence and following around the world. That deal was extended in 2012 and now, the club has announced that it has been extended once again.

Higher bond yields also suggest that bonds are now looking more attractive relative to stocks, potentially ending years when stocks looked like the only game in town for investors.

Amazon announced that eligible members of its Prime program could earn 5 percent back on their purchases at Whole Foods Market if they shop with a Prime Rewards Visa Card.

Walmart Inc., based in Bentonville, Arkansas, earned $2.17 billion, or 73 cents per share, in the three-month period ended january 31. The full-year figure was $500.3 billion, an increase of $14.5 billion, or 3%.

Excluding charges, Walmart earned $1.33 per share. On average, 29 analysts polled by Thomson Reuters expected the company to report profit per share of $1.37 for the quarter.

The world's largest retailer posted revenue of $136.27 billion in the period, exceeding the $135.04 billion that analysts polled by Zacks predicted. Germany's DAX rose 0.8 percent, while France's CAC 40 gained 0.6 percent.

Walmart plunged 10 percent Tuesday after reporting weak online sales and disappointing earnings. Earnings were also affected by one-time severance costs connected to the closure of 63 Sam's Club stores in the US.

Now on the other hand, if you take the NY metropolitan area as one example, not the only one, the Jet brand is really well known, has a lot of traction, has appeal, as we mentioned earlier, to urban, millennial, higher-income customers. Walmart's previous tax rate was 32.5 percent. Nonetheless, Walmart stock dropped 7.02% in premarket trading Tuesday on worries about profit and e-commerce slowdowns.

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