With online sales up 24% in its fiscal second quarter from the prior quarter, the mass merchant says its e-commerce business will grow 25%, instead of 30%, in its fiscal year ending Jan. 31, 2015.
The web sales of Wal-Mart Stores Inc. grew 24% in its fiscal second quarter ended Aug. 2, down from 27% growth in the first quarter. The mass merchant announced on a conference call with investors that it is now estimating web sales growth of 25% for the fiscal year, down from its original estimate of 30% growth. Wal-Mart’s current fiscal year ends Jan. 31, 2015.
“Although we are slightly revising our e-commerce sales growth to 25% for this year, we continue to be very encouraged by the progress we are making on our strategic goals,” said Charles Holley, chief financial officer, on a second quarter earnings call with investors, according to a transcript from Seeking Alpha
Globally, Wal-Mart’s web properties saw high growth. The web sales in Canada and Argentina grew by triple digits, and double digits in Brazil, Mexico and Chile. In China, Yihaodian—the company’s e-commerce platform there—grew traffic in the second quarter by triple digits. Net sales grew by double digits. E-commerce sales in the United States and the United Kingdom also grew by double digits.
“We are very excited about the innovation and growth in our e-commerce businesses around the world,” Greg Foran, president and CEO of Wal-Mart U.S., said during the conference call. “As I mentioned earlier, Mexico celebrated the first anniversary of Wal-Mart.com.mx in June. Traffic grew to nearly triple last year’s volume, positioning Wal-Mart.com as one of the fastest growing e-commerce retail businesses in Mexico and the third most visited, according to comScore.” ComScore Inc. is a provider of web traffic data.
The company also announced it will invest $240 million to $340 million in its e-commerce operations this year, which is above previous guidance for $100 million to $200 million. Much of that investment will go toward its new fulfillment center in Indiana.
For the fiscal second quarter ended Aug. 2, Wal-Mart reported:
For the six months ended Aug. 2, the chain reported: