Walmart Just Had Its Worst Trading Day Since 1988

The DOW saw a drop of 254 points on Tuesday, dragged down by Walmart which posted its worst day since January of 1988.

Shares of Walmart closed down about 10% after the company reported its earnings.

The holiday period for the company was rough but during the fourth quarter, revenue as well as same-store sales were better than what analysts had expected.

“During the quarter, [Walmart] had additional EPS headwind related to some smaller unplanned items and expenses we incurred as we pulled forward initiatives in order to take advantage of a higher tax deduction,” remarked CFO Brett Biggs.

The company reported EPS of $1.33 versus $1.37 expected. Revenue at $136.3 billion was ahead of the $134.9 billion anticipated. Same store sales in the U.S. grew 2.6% compared to the 2.2% that analysts were waiting for.

Online sales grew just 23 percent during the period and it’s what may have sent traders over the edge. In the quarter a year ago the company saw online sales grow 50%.

Looking ahead, Walmart is expecting 40% e-commerce growth in 2019.

“Jet.com complements Walmart.com nicely,” CEO Doug McMillon said. “Including online grocery, it has been the key driver of our e-commerce growth and that will continue.”

“We’re going to continue expanding our e-commerce businesses as it relates to food … with online grocery ramping up. So we think by the time we get to the end of the year, and look back at the number for the total year, [e-commerce sales] will be approximately 40 percent.”

Disclaimer: We have no position in Walmart Inc. (NYSE: WMT) and have not been compensated for this article.