Walmart is an American retail chain He announced that in the first nine months of the fiscal year 2018 saw a 61.2% drop in net profit to $ 2.983 billion.
This decline is related to the transformation of the store business as Walmart focuses on online sales to deal with giants such as Amazon that seem to be paid in the last quarter. Walmart, the largest retail chain in the world, reported that in the first three quarters of the fiscal year 2018 earnings per share were $ 1.01 compared to $ 2.54 in the same period of the previous fiscal year. a decrease of 60.2%
Revenues in the past nine months increased by 3.2% over the same period last year to $ 375.612 million, compared with 364.076 million in the same period in 2017. As for the most recent quarter, several analysts on Wall Street today, net benefits reached $ 1710 million, 2.2% less than in the same period of the previous fiscal year. The quarterly earnings per share was 58 cents, exactly the same as in the closed quarter in October 2017, and revenue rose 1.4% to 124.894 million dollars.
Profits have been boosted by strong ecommerce sales as the company continues to crash online brands to compete with Amazon in categories such as garments and household items, while growing its food business.
Walmart has increased profits and sales forecasts in the same store in the United States for the whole year as it is expected to increase sales in the last period of the year. "We have a business momentum while executing our plan and benefiting from a favorable economic environment in the US," Walmart CEO Doug McMillon said in a statement.
Read also: Walmart raises the age to buy weapons at age 21
Sales to US stores increased by 3.4% over the past twelve months, which is a rise higher than predicted by analysts. Online sales grew by 43% in the third quarter, so the company said it is on track to achieve its 40% growth target for e-commerce sales for the full year. Especially before the Christmas holidays, Walmart focused on expanding the range of online products. One way to do this is by acquiring digital brands, including the latest fashion merchant Eloquii and Bare Necessities.
Head of the company's e-commerce department Walmart in the United StatesMarc Lore recently said that Walmart could someday have more than 40 retailers in e-commerce. With this growth, Walmart is expected to overtake Apple as the third-largest e-commerce retailer in 2018, behind only Amazon and EBay, according to a new eMarketer quoted by CNBC.
Walmart is expected to obtain 4% of e-commerce sales in the United States, about $ 21,000 million, the market research firm said.