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Walmart’s share price soars due to strong revenue gains

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’s share price soared on Thursday as investors focused on the retail giant’s strong quarterly revenue gains and shrugged off a net loss linked to the sale of a majority stake in its Brazilian unit.

Walmart's share price soars due to strong revenue gains
Walmart's share price soared on Thursday as investors focused on the retail giant's strong quarterly revenue gains and shrugged off a net loss linked to the sale of a majority stake in its Brazilian unit

The Bentonville, Arkansas-based company posted a net loss of US $861 million for the three months ended July 31, 2018, compared with net income of US $2.9 billion for the same quarter of 2017, Efe reported.

The net loss was a direct consequence of the company’s sale of its majority stake in Walmart Brasil, a transaction for which the retailer recorded a US $4.8 billion pre-tax loss.

But investors focused much more on the company’s total revenues between May and July of US $128 billion, which were up from US $123.4 billion in the same quarter of 2017 and higher than Wall Street’s expectations.

Walmart has begun reaping the benefits of a renewed focus on grocery sales in recent months and also has seen strong e-commerce sales growth since redesigning its Web site in a bid to compete with Amazon.

“Thanks to the hard work of our associates, we had a great quarter with strong results and momentum across the business. We’re pleased with how customers are responding to the way we’re leveraging stores and e-commerce to make shopping faster and more convenient,” Walmart President & CEO was quoted as saying in a company press release.

Walmart’s share price was up by more than 10 percent shortly after 12.30 pm at US $99.52 a share, making it by far the biggest gainer Thursday among the Dow 30.