Please ensure Javascript is enabled for purposes of website accessibility

Walmart Reports Solid Sales and Earnings, Despite Retail Slowdown

By The Daily Upside – Aug 17, 2021 at 7:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The phrase "too big to fail" could be aptly applied to the brick-and-mortar retail climate of today. As various merchants wade through supply...

For more crisp and insightful business and economic news, subscribe to The Daily Upside newsletter. It's completely free and we guarantee you'll learn something new every day.

The phrase "too big to fail" could be aptly applied to the brick-and-mortar retail climate of today.

As various merchants wade through supply chain snags, climbing costs, and a resurgence of Covid-19, Walmart on Tuesday reported another quarter of rising U.S. sales, surpassing Wall Street expectations.

Back-To-Store Season

It is officially back-to-school season, and groceries are pretty much always in season. It's those two categories in particular that lifted Walmart's sales for the quarter wrapping up at the end of July:

  • The chain's food sales grew $2.4 billion versus a year ago, as Walmart's low prices and reliable inventory of meats and produce drew shoppers in.
  • And comparable sales (those from U.S. stores and digital channels operating for at least a year), rose 5.2% in the quarter compared with the same period last year.

The solid figures put Walmart's revenue $4 billion above analyst expectations, with CFO Brett Biggs reporting that the Delta variant hasn't had "any meaningful impact" on the national business, as customers continue to pack stores this summer after "coming out of hibernation."

The Real Tale In Retail: The Commerce Department said Tuesday that U.S. retail sales (purchases at stores, restaurants, and online) dropped 1.1% in July as consumer spending dipped broadly in everything from clothing to cars.

Walmart U.S. CEO John Furner said the company's sheer magnitude has enabled it to escape supply chain and inflationary pressures, noting that Walmart has managed to avoid inventory shortfalls by securing supplies in advance and chartering its own vessels for importing goods.

Tool Time(out): Fellow big-box chain Home Depot reported comparable sales growth of just 4.5% in the recent quarter, a marked decline after 4 consecutive quarters of over 20% growth. Seems like your neighborhood Tim "The Toolman" Taylor is taking a breather from all of last year's home improvements.

None

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
356%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.