Walmart gains e-commerce market share
At a time when e-commerce is showing signs of slowing down, Walmart's digital traction appears to be picking up.
Why it matters: Walmart's performance in any metric is a big deal for the entire retail sector given the company's scale and impact across the broader economy.
Context: The e-commerce ups are notable, but so too are the downs in Walmart's earnings on Tuesday, which disappointed Wall Street and sent the company's shares tumbling.
- The company pointed to higher costs and supply chain issues for its poor quarterly performance.
Yes, but: When it comes to the all-important e-commerce segment, YipitData analyst Avi Danda points out that Walmart is competing closely with Amazon.
Quick take: Walmart's market share gain has accelerated since the fall mainly "due to Walmart growing their online marketplace via higher SKU counts and more international sellers on the platform," Danda says.
Of note: First-quarter earnings came in below expectations and Walmart forecast a higher sales outlook but lowered its earnings expectations.
- While the quarter's e-commerce sales notched up 1% over a year earlier, it increased 38% on a two-year stack, the company reports.