(FinancialPress) — Walmart‘s e-commerce business is surging. The quarterly report released by the American conglomerate shows that the unit beat profit and revenue expectations – which led to a rise in
share price over premarket trade.
The largest retailer in America saw a growth of 33% in electronic sales during Q1 2018 – which closed on April 30th. Over the previous 3 months, it had logged a 23% rise in sales. By its own estimates, Walmart expects its e-commerce unit‘s sales to grow a full 40% once the year closes off.
The company had experienced lagging sales over the holiday period, stoking the fire of fear in investors. This rebound serves as a foil to that scare, which had shares dropping as much as 10% and wiped out an astounding $31 billion off of its market capitalization. It‘s widely accepted that the major fear was Walmart‘s apparent inability to keep up with its main rival – Amazon.com Inc.
Brett Biggs, who serves as CFO for Walmart, said in an interview that “online grocery continued to accelerate and we also have new brands in e-commerce including the partnership with Lord and Taylor, so there are a lot of different things driving growth there“. He added that the Walmart.com website redesign helped reach the obtained percentage, even when it came close to the end of the quarter.
Other notable action for the past quarter includes Walmart‘s acquisition of a majority stake in India‘s e-commerce platform Flipkart, to the tune of $16 billion. The 77% stake was acquired as to secure a fighting chance against Amazon in the region.
Walmart will also be selling a majority stake in the UK‘s Asda Group Ltd. grocery chain to J Sainsbury PLC.