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Business

Wal-Mart reports robust sales; shares surge

Opening sequence

Opening sequence

Business

Wal-Mart reports robust sales; shares surge

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COMING UP:Wal-Mart reports robust sales; shares surge

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Transcript

00:00:00
>> Walmart bucking the retail trend Thursday reporting U.S. sales rose in the first quarter, and beating Wall Street's profit and revenue expectations, sending its stock up nearly 9%. It also gave an upbeat second quarter forecast. Walmart's latest earnings report stands in contrast to that of rival Target's, which gave a cautious outlook just a day earlier and reported sales growth that was much lower than what analysts had been expecting.
00:00:26
Reuter's correspondent Nathan Lane details what's working at Walmart.>> The big thing to look at is apparel. Where apparel has been hitting a lot of the retailers, Walmart is cited as a strength. Now what may be pushing that Is the difference in customer base. For example, Target tends to cater to a higher income bracket of consumer, Walmart tends to serve a lower income consumer.
00:00:59
And so, what we may be seeing is a little bit of that macro trend.>> One weak spot for Walmart, online shopping. Despite investing heavily in its web business, it's still struggling to compete with Amazon.>> The analyst are also worried about the e-commerce sales. E-commerce growth was 7%.
00:01:18
That may not sound too bad on the surface, but if you look at other retailers that are growing at a double digit pace online, 7% is not necessarily that strong. And it's a deceleration from recent quarters.>> Walmart has also been investing in wage increases and in training its workforce.
00:01:38
It said customer service scores were improving and that more folks were making trips to its physical stores.