Walmart beats on profit, posts record online sales on pandemic boost

The results showed that the unprecedented spike in demand seen by big-box retailers at the peak of the coronavirus lockdowns has remained strong even as restrictions ease, with shoppers using their stimulus checks to shop for discretionary items like sneakers and clothes. This also helped Walmart reduce the number of markdowns or discounts.

However, as stimulus funds tapered off, sales at Walmart returned to normal, recording only a 4% rise in comparable sales in July. Shares of the company were marginally down at $135 in pre-market trading.

“The health crisis has created … both tailwinds and headwinds to our business,” said Chief Financial Officer Brett Biggs on a call with investors. “In Q2, we saw stronger-than-expected sales due in large part to stock-up buying and stimulus spending, but the duration and extent of future government stimulus remains uncertain.”

Walmart executives also said the back-to-school season has been “choppy,” as more school districts rolled back their reopening plans to curb the spread of coronavirus and shoppers had little-to-no need for backpacks and uniforms.