What's Behind Walmart's Strong E-Commerce Growth
Walmart's (NYSE: WMT) better-than-expected second-quarter results were headlined by 2.8% comparable-store sales growth in the United States. Half of that growth was driven by Walmart's surging e-commerce business, which climbed 37% year over year for the second straight quarter.
Walmart's efforts to take on Amazon (NASDAQ: AMZN) in e-commerce continue to pay off in sales growth, although it's worth noting it's been a drag on gross profit margin. Walmart U.S. successfully offset that margin pressure by exhibiting operating leverage last quarter, but continued growth may require more up-front investments in what drove its success over the past three months.
Image source: Walmart.
Source Fool.com
