Size Matters: Walmart, Home Depot Report Bang-Up Second Quarters
These might be hard times for retailers, but not for the largest among them. Walmart reported a massive surge in income for the second quarter of 2020, more than compensating for the rising costs associated with during business during the coronavirus pandemic.
Total Q2 income for the retail giant came in at $6.48B, Chain Store Age reports, compared with $3.61B for the same quarter in 2019. Costs related to the coronavirus totaled about $1.5B during the quarter.
"There were several tailwinds affecting our Q2 performance, including government stimulus, more people eating at home, a focus by customers on entertaining themselves at home, and investing in their homes and yards," Walmart President and CEO Doug McMillon said during the company's earnings call on Tuesday.
"During the second quarter, our customers were spending so much more time at home that we experienced strong sales in categories like TVs, computing and connected home," McMillion said. "Customers also took advantage of time for outdoor entertainment and sports, which led to strengthen those categories."
Target Corp. is reporting its Q2 numbers on Wednesday, and it too is expected to have had a strong quarter, and for similar reasons as its main rival. Home Depot reported on Tuesday that its quarterly net sales were up 23% for the quarter compared with a year ago, and same-store sales surged about 25%.
"Our recent customer survey work tells us that customers have a continued willingness to take on both indoor and outdoor projects in the near term," President and CEO Craig Menear said during his company's earnings call. "Customers are consolidating the number of retailers they visit and are blending the physical and digital elements of the shopping experience more than ever before."