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Time of India
4 days ago
- Business
- Time of India
Mid-year ecommerce sales spike sets the stage for cracking festive season
Ecommerce order volumes during the recent sale period grew 19% compared with a year earlier, according to market trackers and sharp discounts-driven rise in consumer demand, across categories such as smart TVs, headphones, air conditioners, kids' essentials, and luggage, is seen setting the tone for the festive season that starts in September, according to brands and industry July 11-14 sale window, which saw overlapping campaigns from marketplaces like Amazon India and Flipkart as well as direct-to-consumer brands, marked a notable uptick in volumes, according to ecommerce software company Unicommerce. Analysts say this momentum could help lift performance in the current quarter, offering some respite amid a broader slowdown in ecommerce tier-I and metro cities saw a 15% year-on-year rise in order volumes, tier-II and tier-III cities recorded faster growth at 21% and 22%, respectively during this year's sale period compared to 2024, Unicommerce assumes significance as ecommerce companies look to rebound from sluggish growth last year, when the sector posted 10-12% annual growth as per a Bain-Flipkart report, compared with 20-30% till a few years sale events – such as Amazon 's Great Indian Festival Sale and Flipkart's The Big Billion Days – during the festive season typically account for almost half of the gross merchandise value these companies report in a for Flipkart and Amazon India said the platforms posted strong growth in consumer electronics, smartphones, beauty, fashion and other categories during the recent events.'Premium segments are performing exceptionally well, with high-end smartphones, TVs and consumer electronics showing double-digit growth led by Samsung, Apple, Sony , Lenovo and OnePlus,' an Amazon India spokesperson said.'TVs perform better during this (sale) period because they are appliances that people plan to buy and often wait for the best deals,' ecommerce consultancy firm Datum Intelligence's Satish Meena said. 'Tablets saw some increase – better than smartphones – but still remained under 10%. Standard headphones, on the other hand, have performed very well this time too. Even air-conditioner sales have exceeded expectations, despite the summer not being particularly strong.'Consumer electronics company Boat, luggage makers Eume and Uppercase, home appliances brand Atomberg, kitchen equipment manufacturer Solara and fashion brand Zouk posted strong sales during the July sale saw a rise in sales during Prime Day, with overall growth in the audio category expected to exceed 20%, said the IPO-bound company's chief operating officer, Gaurav Nayyar. Kitchen appliance startup Beyond Appliances said it recorded a fivefold increase in sales over the last two days compared with business-as-usual (BAU).Atomberg saw double-digit growth in fan sales during the sale period, while its mixer grinder category posted an eightfold increase in volumes, the Mumbai-based consumer appliances maker Krishnakumar, founder of fashion brand Zouk, said its sales rose fourfold across marketplaces compared with usual business levels. Shreyans Jain, cofounder of sports nutrition startup Nutrabay, said it saw a threefold jump in sales compared with BAU and a 43% increase over last year's brand Uppercase witnessed a sixfold jump in sales during the sale period compared to normal days, with year-on-year growth of nearly 80%. Eume said its revenue for Q1 FY26 is roughly 80 % higher than the previous quarter and it expects a similar momentum in Q2.'We usually give a discount of 15-20% on a BAU day and during this promotion period, that will go anywhere between 40% and 45% depending on the stock that we have of the particular product. So, if we want to liquidate, this is the right time,' said Uppercase cofounder and managing director Sudip executives said these sales marked the beginning of festive season preparations, with brands now ramping up their supply efforts with new product launches and category push.'One aspect of preparation is very supply-focused, where I think a lot of the inbounding of products into warehouses will start in about a month. We have a bunch of new products for the festive season that we will be launching,' Krishnakumar of fashion brand Zouk are now revising their estimates for Diwali based on the current demand to have enough inventory ahead of the event.'Diwali is our key focus, and these numbers have prompted us to re-forecast for the year. Last year was relatively slow for both Amazon and the broader market, but this time, Prime Day is shaping up to be a strong indicator for the upcoming festive season. The positive signals we're seeing now are the reason we're recalibrating our plans,' said Solara's founder and chief executive Gopal Ghose said the company has new product launches planned for the festive season, which also coincides with peak travel months, a period when categories like check-in luggage are expected to see strong Ventures-backed kids' personal care brand Tuco Intelligent, which said it saw a twofold increase in sales, said it plans to launch new gifting SKUs in skincare, lotions, and makeup in time for Diwali.'Overall, consumer spending is returning to the market, so we can expect higher spending during the Diwali sales,' said Datum's Meena.
Economic Times
4 days ago
- Business
- Economic Times
Mid-year ecommerce sales spike sets the stage for cracking festive season
ETtech Ecommerce order volumes during the recent sale period grew 19% compared with a year earlier, according to market trackers and sharp discounts-driven rise in consumer demand, across categories such as smart TVs, headphones, air conditioners, kids' essentials, and luggage, is seen setting the tone for the festive season that starts in September, according to brands and industry analysts. The July 11-14 sale window, which saw overlapping campaigns from marketplaces like Amazon India and Flipkart as well as direct-to-consumer brands, marked a notable uptick in volumes, according to ecommerce software company Unicommerce. Analysts say this momentum could help lift performance in the current quarter, offering some respite amid a broader slowdown in ecommerce growth. While tier-I and metro cities saw a 15% year-on-year rise in order volumes, tier-II and tier-III cities recorded faster growth at 21% and 22%, respectively during this year's sale period compared to 2024, Unicommerce assumes significance as ecommerce companies look to rebound from sluggish growth last year, when the sector posted 10-12% annual growth as per a Bain-Flipkart report, compared with 20-30% till a few years ago. The sale events – such as Amazon's Great Indian Festival Sale and Flipkart's The Big Billion Days – during the festive season typically account for almost half of the gross merchandise value these companies report in a year. Spokespeople for Flipkart and Amazon India said the platforms posted strong growth in consumer electronics, smartphones, beauty, fashion and other categories during the recent events. 'Premium segments are performing exceptionally well, with high-end smartphones, TVs and consumer electronics showing double-digit growth led by Samsung, Apple, Sony, Lenovo and OnePlus,' an Amazon India spokesperson said. 'TVs perform better during this (sale) period because they are appliances that people plan to buy and often wait for the best deals,' ecommerce consultancy firm Datum Intelligence's Satish Meena said. 'Tablets saw some increase – better than smartphones – but still remained under 10%. Standard headphones, on the other hand, have performed very well this time too. Even air-conditioner sales have exceeded expectations, despite the summer not being particularly strong.' Keeping count Consumer electronics company Boat, luggage makers Eume and Uppercase, home appliances brand Atomberg, kitchen equipment manufacturer Solara and fashion brand Zouk posted strong sales during the July sale saw a rise in sales during Prime Day, with overall growth in the audio category expected to exceed 20%, said the IPO-bound company's chief operating officer, Gaurav Nayyar. Kitchen appliance startup Beyond Appliances said it recorded a fivefold increase in sales over the last two days compared with business-as-usual (BAU).Atomberg saw double-digit growth in fan sales during the sale period, while its mixer grinder category posted an eightfold increase in volumes, the Mumbai-based consumer appliances maker Krishnakumar, founder of fashion brand Zouk, said its sales rose fourfold across marketplaces compared with usual business levels. Shreyans Jain, cofounder of sports nutrition startup Nutrabay, said it saw a threefold jump in sales compared with BAU and a 43% increase over last year's brand Uppercase witnessed a sixfold jump in sales during the sale period compared to normal days, with year-on-year growth of nearly 80%. Eume said its revenue for Q1 FY26 is roughly 80 % higher than the previous quarter and it expects a similar momentum in Q2.'We usually give a discount of 15-20% on a BAU day and during this promotion period, that will go anywhere between 40% and 45% depending on the stock that we have of the particular product. So, if we want to liquidate, this is the right time,' said Uppercase cofounder and managing director Sudip Ghose. Prep for festive sales Several executives said these sales marked the beginning of festive season preparations, with brands now ramping up their supply efforts with new product launches and category push.'One aspect of preparation is very supply-focused, where I think a lot of the inbounding of products into warehouses will start in about a month. We have a bunch of new products for the festive season that we will be launching,' Krishnakumar of fashion brand Zouk are now revising their estimates for Diwali based on the current demand to have enough inventory ahead of the event.'Diwali is our key focus, and these numbers have prompted us to re-forecast for the year. Last year was relatively slow for both Amazon and the broader market, but this time, Prime Day is shaping up to be a strong indicator for the upcoming festive season. The positive signals we're seeing now are the reason we're recalibrating our plans,' said Solara's founder and chief executive Gopal Ghose said the company has new product launches planned for the festive season, which also coincides with peak travel months, a period when categories like check-in luggage are expected to see strong Ventures-backed kids' personal care brand Tuco Intelligent, which said it saw a twofold increase in sales, said it plans to launch new gifting SKUs in skincare, lotions, and makeup in time for Diwali.'Overall, consumer spending is returning to the market, so we can expect higher spending during the Diwali sales,' said Datum's Meena. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Leadership shakeups cloud Ola Electric's revival attempts Trent trips on the ramp. Is it still worth the splurge or time to change brands? Just before the Air India crash, did India avert another deadly mishap? Can Indian IT protect its high valuation as AI takes centre stage? Stock Radar: Why is Hindustan Zinc looking good for a short-term bounce after falling over 35% from highs? These large-caps have 'strong buy' & 'buy' recos and an upside potential of more than 25% Buy, Sell or Hold: Motilal Oswal maintains buy rating on HCL Tech; ICICI Securities maintains sell call on Tata Technologies Consolidation: An opportunity or threat? Depends on…. 5 mid-cap stocks from different sectors with upside potential of over 26%
Yahoo
24-02-2025
- Business
- Yahoo
Walmart Shares Sink on Soft Sales Forecast. Is It Time to Buy the Stock on the Dip?
Walmart (NYSE: WMT) has been one of the biggest winners in the retail space, but its shares slipped after the retail giant issued a cautious 2025 outlook. The stock is still up about 65% over the past year, as of this writing. Let's take a closer look at its results and guidance to see if this dip is a good buying opportunity. Walmart continued its consistent mid-single-digits revenue growth in the fourth quarter, with revenue increasing 4.1%, or 5.3% in constant currencies, to $180.6 billion. Adjusted earnings per share (EPS), meanwhile, rose 10% to $0.66. The results edged past analyst estimates calling for revenue of $180 billion and adjusted EPS of $0.64, as compiled by LSEG. In the U.S., Walmart store sales rose by 5% to $123.5 billion, while same-store sales jumped 4.6% without fuel. Average ticket grew by 1.8%, while transactions increased by 2.8%. E-commerce soared 20%, led by store-fulfilled pickup and delivery, advertising, and marketplace. Walmart continues to see strong growth in its Walmart Connect advertising business, with U.S. revenue jumping by 24% in the quarter. The company is also continuing to make big strides in its online marketplace business, with revenue soaring 37%. Marketplace sellers using its advertising services increased by 50%. It also noted that almost 45% of marketplace orders were now being fulfilled by Walmart Fulfillment Services, and that it was investing in supply chain automation to improve costs and delivery efficiency. Walmart+ memberships grew by double digits once again. The company said the number of customers getting same-day deliveries in less than three hours or under an hour have soared. It also noted strong momentum with its new pharmacy delivery program. Grocery continues to be a standout category for the retailer, while health and wellness sales growth led the way, primarily due to the sales of GLP-1 weight-loss drugs. General merchandise sales continued to rebound, with strength in toys, home, and fashion. Internationally, Walmart sales slipped 0.7% to $32.2 billion, but were up 5.6% in constant currencies. The company said it saw strong growth in China, Mexico, and Canada. However, a calendar shift related to Flipkart's (India e-commerce) "The Big Billion Days" event hurt growth. International e-commerce sales rose 4%, while advertising revenue increased 10%, both hurt by the Flipkart calendar shift. Walmart's warehouse store concept, Sam's Club U.S., saw its revenue climb 5.7% to $23.1 billion. Same-store sales, excluding fuel, surged 6.8%, with transactions up 5.4% and the average ticket rising 1.3%. E-commerce sales climbed 24%, while memberships rose 13% year over year. The company recently launched same-day and next-day shipping for Sam's Club, which was a hit with members. It also said that Sam's+ membership penetration continues to grow. This table shows Walmart's important revenue and profitability metrics by segment for the fourth quarter. Metric Walmart U.S. Walmart International Sam's Club Overall Revenue (in billions) $123.5 $32.2 $23.1 $180.6 Revenue growth 5% -0.7% 5.7% 4.1% Same-store sales growth 4.6% N/A 6.8% - Transactions 2.8% N/A 5.4% - Ticket 1.8% N/A 1.3% - E-commerce 20% 4% 24% 16% Data source: Walmart. Looking ahead, Walmart forecast fiscal 2026 revenue to increase between 3% to 4% in constant currencies, with adjusted EPS to come in at a range of $2.50 to $2.60. It also said it was looking for adjusted operating income growth of 3.5% to 5.5%. For the first quarter, it is looking for revenue growth of 3% to 4% and adjusted EPS of between $0.57 to $0.58. Q1 Guidance Full-year guidance Revenue growth (constant currency) 3% to 4% 3% to 4% Operating income growth (constant currency) 0.5% to 2% 3.5% to 5.5% Adjusted EPS $0.57 to $0.58 $2.50 to $2.60 While investors were unhappy with Walmart's full-year guidance, it is actually pretty similar to its original forecast last year, when it was looking for constant currency revenue growth of 3% to 4% and adjusted operating income growth of 4% to 6%. The company then consistently raised guidance throughout the year and ended up with 5.6% constant currency revenue growth and 8.6% adjusted operating income growth for fiscal 2025. Overall, the company is seeing the same dynamics at play driving its business. Upper-income households, or those earning more than $100,000 a year, continue to be the biggest growth driver for the company. They are spending more and enjoying the convenience of same-day delivery at Walmart stores, and now with Sam's Club as well. Grocery continues to be Walmart's bread and butter, but that strength is emanating to other areas like pharmacy while also helping a rebound in general merchandise. The company's also making nice strides with its e-commerce marketplace business and with advertising. From a valuation standpoint, Walmart's shares now trade at a forward price-to-earnings (P/E) ratio of about 35 times this year's analyst estimates, which is certainly high compared to its recent historical valuation. Overall, I think Walmart should be a solid long-term winner and that its story remains intact. However, its valuation is a bit ahead of itself, even after the pullback. As such, I think it is better to hold on to shares, rather than add to or enter new positions in the stock at this time. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $348,579!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $46,554!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $540,990!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of February 21, 2025 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy. Walmart Shares Sink on Soft Sales Forecast. Is It Time to Buy the Stock on the Dip? was originally published by The Motley Fool Sign in to access your portfolio
