What's more, Home Depot got a lift from record low mortgage rates that is spurring the housing market, and by extension the need for renovations. Walmart reported a massive 27% increase in the size of its average ticket but said the volume of transactions declined 14%.
Retail giant Walmart Inc. Target, Lowe's, TJX Cos. and Victoria's Secret parent are slated to report their earnings Wednesday. Home Depot's fiscal second-quarter sales surged to easily top Wall Street's expectations as consumers continued working on home projects and gardening amid the coronavirus outbreak.
During the quarter, Walmart'r revenue rose 5.6%, or $7.4 billion, from the same quarter a year ago - benefiting from its status as an essential business that remained open during the darkest days of the COVID-19 lockdown.
Total revenue rose about 5.6 percent to $137.74 billion.
Turning back to corporate news, Advance Auto Parts shares were 2.09% higher in early trading after reporting a big profit beat as sales rise above forecasts, while Tesla shares surged almost 350% after the bell ahead of its expected five-for-one split later in the month.
United Kingdom enjoys mini-housing boom as July sees £37bn of deals
He also said that the increase in sales was not just due to the chancellor's stamp duty cut in England and Northern Ireland. Post lockdown period has seen an increased demand for homes with spacious living spaces and garden areas.
As a result of the strong performance so far this year, Walmart also paid out US$1.1 billion in special bonuses to employees via three tranches, with the third and latest pool of $428 million to be distributed on 20 August 2020. On a USA comparable store basis, inventory is down 10%. The FactSet consensus for earnings per share was $3.68.
The $600-a-week federal unemployment check that had been sent to roughly 28 million laid-off workers is gone. And a United States dollars 1,200 stimulus check that was sent to many Americans in April and May appears to be a thing of the past.
That had been a concern for analysts trying to predict how that will influence where Americans shop. The enhanced benefits expired at the end of July. Back-to-school sales are off to a slower start than normal but Walmart said it is set up to serve families regardless of whether they home school or turn to the classrooms. He told analysts on a call that another round of stimulus money is necessary for small businesses.
Flipkart had last month acquired Walmart India's wholesale business and launched the B2B marketplace Flipkart Wholesale.
Walmart's share price has also been a beneficiary of higher sales this year, thanks to panic buying caused by Covid-19.