Walmart's competitive strategies of aggressive discounting and increased ecommerce services seems to paying off with the company's third quarter results topping Wall Street projections, according to several press reports.
Results topped analysts' expectations for the US--same-store sales for US locations surged 2.7 per cent, climbing for the 13th consecutive quarter, and e-commerce sales jumped 50 per cent.
Walmart International's Canadian operations performed well in a highly competitive environment, with net sales increasing 1.9 per cent and comp sales climbing 1 per cent. Although gross profit rate declined, the company says this was driven primarily by planned price investments.
Grocery drives growth
"The food business, in particular, has accelerated and delivered the strongest quarterly comp sales performance in almost six years with our fresh meat, bakery and produce teams leading the way,” stated Walmart president and CEO Doug McMillon in a prepared statement. “Expense leverage has also been a priority and we’re pleased that the segment leveraged expenses in the third quarter.”
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WATCH: CNBC Report: https://www.cnbc.com/2017/11/16/wmt-q3-earnings-2017.html
WATCH: Edward Yruma, Keybanc Capital Markets on CNBC: