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.

Slumdog Millionaire director Danny Boyle may helm the next James Bond film
The report also stated that Yann Demange , director of White Boy Rick , is also in the race to helm the project. While he is now developing an unnamed new project, that could reportedly be put aside if Bond came calling.

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.

Related Articles

  • The Baaghis, Tiger Shroff and Disha Patani are here

    The Baaghis, Tiger Shroff and Disha Patani are here

    The much-awaited trailer of high-octane action drama " Baaghi 2" has been released. From the looks of it, the film deals with the subject of child trafficking.

    United States dollar rebounds ahead of government debt auctions

    Federal Reserve will release the minutes of the January 30-31 meeting of its policy-setting Federal Open Market Committee. The dollar index, which measures the greenback against a basket of currencies, was up 0.03 percent at 89.742.
    Arsenal seal record shirt deal

    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.
  • Russian freestyler wins bronze in men's ski cross in PyeongChang

    Russian freestyler wins bronze in men's ski cross in PyeongChang

    Drury finished fourth after crashing with Sergey Ridzik, an Olympic Athlete from Russian Federation , early in the race. Canada's Brady Leman won the gold medal in men's ski cross on Wednesday at Phoenix Snow Park on a crash-filled day.

    I want to stay with Real Madrid, says Zinedine Zidane

    With a long contract or not, it is day by day, that is what helps me be strong. "Just before", the former Real Madrid superstar and France worldwide said.
    Solo Tie-In Books and Novels Revealed

    Solo Tie-In Books and Novels Revealed

    One story takes place before Solo , one takes place after Solo and a third takes place after Return of the Jedi . Solo: A Star Wars Story is scheduled to make its lightspeed arrival at theaters on May 25.
  • Karl-Anthony Towns Gets Double-Double At NBA All-Star Game

    Karl-Anthony Towns Gets Double-Double At NBA All-Star Game

    He missed two games in October due to an illness, and he sat out four games in late January because of a sore right knee. Williams, 31, is averaging a career-high 23.2 points per game along with 5.3 assists so far this season.
    22 items suspended from original TPP deal

    22 items suspended from original TPP deal

    However, an analysis of the deal's economic benefit for New Zealand suggests it may be less significant than originally thought. The 11 TPP countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
    Uber plans to sell South-east Asia business to Grab

    Uber plans to sell South-east Asia business to Grab

    Singapore-based Grab offers its ride-hailing services in more than 100 cities across Southeast Asia. It looks as though the ride-sharing giant Uber could be making a retreat out of Southeast Asia.
  • Husband killer Catherine Nevin has died, just months after prison release

    Husband killer Catherine Nevin has died, just months after prison release

    Her subsequent trial was one of the most high profile in the history of the state and she became known as the "Black Widow". A purchase order for plot number 524 shows Nevin gave her address at the time as Jack White's, Arklow publican.

    PNB Fraud: Jaitley breaks silence, says India will chase down cheaters

    He also said that the agency is examining if the money taken from the bank was diverted to these shell companies. He said that an example should be made of the incident and such examples should not be repeated in future.
    Secret Pence, North Korea meeting planned, then scrapped

    Secret Pence, North Korea meeting planned, then scrapped

    However, South Korea's President Moon Jae-in has said he is considering accepting an invitation to visit Kim Jong-un in Pyongyang. North Korea has not carried out any weapons tests since it shot off its biggest intercontinental ballistic missile last November.