Walmart, Home Depot beat expectations
Walmart on Tuesday posted a bigger-than-expected increase in quarterly same-store sales amid a surge in its online business with higher spending on electronics, sporting goods and groceries.
eCommerce sales at the retail giant grew 79% with strong results across all channels, helping boost same-store sales and profit margins.
The surge in demand for essentials at Walmart has carried into the second half of the year, with consumers relying on its same-day delivery options and store pick-up services to buy everything from groceries to sneakers.
But the health crisis has also forced the world's largest retailer to add about $600 million in additional expenses, that included higher wages for warehouse workers and bonuses for store employees, as well as spending more on cleaning facilities.
Home Depot has also boosted pay for workers and on Tuesday it announced it will spend about $1 billion more annually on employee compensation as it makes some of its temporary pay enhancement programs permanent.
This comes as the home improvement chain benefits from a sustained surge in demand for tools, paint and building materials, as Americans spend more time at home, using their discretionary income on minor home remodeling and repair work
This led to a 24% rise in sales at Home Depot from a year ago, beating analysts expectations.
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