We bet you a million bucks you don't know what happened at a local Walmart (WMT) in Pennsylvania recently.
Somebody won a million bucks, that's what.
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A $1 million-winning scratch-off lottery ticket was sold at a Walmart in Uniontown, WPXI reported on Monday.
Big winnings aside, this promises to be a big week for the world's biggest retailer, which will host its annual shareholders' meeting on Wednesday, followed by Walmart's traditional associates celebration on June 7.
The event, which is part of a week of festivities, will be held at Bud Walton Arena in Fayetteville, Arkansas, and features music, entertainers and messages from senior executives.
"Associates flood in from all corners of the globe for a fast-paced week of all-day activities," the company said in a statement. "They even get a chance to meet with (CEO) Doug McMillon in his office."
In an effort to stem employee attrition, Walmart has been promoting from within, which gives workers an incentive to stick around and rise through the ranks.
Walmart kicked off the year by announcing in January that it would “invest” further into its talent pool, giving store managers the chance to earn more.
The plan calls for boosting base pay, offering annual stock grants of up to $20,000, and redesigning bonuses, so that some really successful store managers can make upwards of $500,000 per year.
Walmart CEO says team delivered 'great quarter'
Meanwhile, executives said they were expanding Walmart's InHome delivery service, a competitor to Amazon Prime, extending it to an additional ten million households.
The expansion includes the states of Massachusetts, Minnesota, Michigan and California.
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The service, which was introduced in 2019, allows customers to receive groceries and essentials directly to their front doors, their garages or their kitchens.
It is now accessible to more than 45 million homes in the U.S.
And speaking of deliveries, McMillon told analysts last month that "our team delivered a great quarter to start the year."
"All three operating segments performed well," he said during Walmart's first-quarter earnings call. "The momentum we see across the business of driven by growth in units sold and transaction accounts as well as market share gains including general merchandise."
"These are not inflation-driven results," McMillon said.
Walmart posted first-quarter earnings of 63 cents per share, up from 21 cents per share a year ago. Adjusted earnings came to 60 cents per share, beating Wall Street forecasts of 52 cents per share.
Revenue total $161.51 billion, up 6% from ago and topping analysts' call for $159.50 billion in sales.
“I want to thank all our associates everywhere," McMillon said during the call. "They deserve all the credit. They're managing the things we've always managed while simultaneously building new capabilities and driving change.”
Sales at Sam's Club, Walmart's membership-only warehouse club retail stores, increased 4.6% to $21.4 billion to beat expectations of $21.27 billion.
Walmart said lower-income customers maintained their spending habits in the quarter but tended to prioritize less-expensive items.
Stage is set for 'outsized profit growth,' analyst says
The price gap between eating at home and dining outside had increased, the company said, boosting Walmart’s grocery business, which accounts for about 60% of total revenues, according to Reuters.
Walmart shares surged to a record high following the May 16 report and marked their biggest one-day gain in four years.
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McMillon acknowledged that he tends to ignore the external environment to focus "on what we are doing and how we earn business with customers and members."
"And if you look at what's happened, we've been known for price forever but we're increasingly known for convenience," he said.
"So, whether the environment is inflationary or deflationary, whether customers have more money or less money, if we're doing a good job on the items and prices and the service we provide, saving them money with pickup and delivery for example, we can continue to grow share," he said.
McMillon added that, "I don't know what the future looks like in terms of what pricing is going to look like a year out, two years out and I don't really worry about that very much."
"I worry about our own execution," he said.
TheStreet Pro’s Stephen Guilfoyle wrote on May 31 that Walmart “is a well-run company, with a tough balance sheet that will need some time to unscrew.”
While Costco (COST) has a stronger balance sheet than Walmart or Target (TGT) , he told investors that “for at least the short to medium term, I would rather own Walmart than Costco.”
On Monday, analysts at Evercore ISI raised the firm's price target on Walmart to $72 from $70 and maintained an outperform rating on the shares.
With business mix potential from higher margin ancillary profit streams such as advertising, membership, and third-party, as well as efficiency traction evident, the "stage is set for sustained share gain and outsized profit growth," the firm said in a research note.
However, Evercore added that with the stock up 25% year-to-date, sustaining traffic momentum, accelerating margin expansion, and managing inflationary headwinds are critical for Walmart to continue outperforming.
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