EARNINGS BEAT - WALMART TAKING SHARE FROM TARGET, HIGH-EARNERS FLOCK TO WALMART. WMT shares hit record high. TGT falls to lowest point in a year.
Walmart is pulling in more high-income earners, and presumably taking share from Target.
This shift to high-end earners isn’t new, and Walmart has noticed this trend for several quarters. McMillon reported this may be more than a fad and this new (high-end) tranche of customers may be there to stay.
Food sales were stellar this quarter. Walmart grocery sales grew at the fastest pace in four years. More high-end items were sold, too - items like grass-fed beef and “gluten-free” comprised many delivery and curbside orders.
WMT reported $169.59 billion in revenue, up from $160.80 billion a year ago, and above the $167.72 billion analysts expected.
Walmart's net income came in at $4.58 billion, beating expectations. E-commerce and advertising operations grew 27% and 28%, respectively.
For more of the story, including details on Target click here.