Introduction to Walmart’s Drone Deliveries

Walmart is bringing drone deliveries to three more states. On Thursday, the big-box retailer said it plans to launch the speedier delivery option at 100 stores in Atlanta, Charlotte, Houston, Orlando, and Tampa within the coming year. With the expansion, Walmart’s drone deliveries will be available in a total of five states: Arkansas, Florida, Georgia, North Carolina, and Texas.

How Drone Deliveries Work

Customers will request a delivery through the app of Wing, the operator who flies the drones through a deal with Walmart. The drone operator will have an up to a six-mile range from stores. Drone deliveries are one of the buzziest examples of Walmart’s efforts to compete with rivals like Amazon on convenience along with low price.

Walmart’s Efforts to Compete with Amazon

With more than 4,600 Walmart stores across the U.S., the retailer has used its large footprint to get online orders to customers faster. It has an Express Delivery service that drops purchases at customers’ doors in as fast as 30 minutes, along with InHome, a subscription-based service, that puts items directly into people’s fridges. The company began same-day prescription deliveries last fall and has expanded the service across the country.

Customer Feedback and Demand

"The number one piece of feedback that we get from our customers are, ‘When are you expanding?’" said Greg Cathey, senior vice president of Walmart U.S. transformation and innovation, referring to drone delivery. Cathey said shoppers using the drone service typically order urgent items, such as hamburger buns for a cookout, eggs to make brownies or Tylenol or cold medicine needed when sick.

Delivery Time and Items

Drone deliveries take 30 minutes or less, the company said. So far, some of the most frequently delivered items include eggs, ice cream, pet food, and fresh fruit, including bananas, lemons, and eggs, Walmart added. Walmart stores have an assortment of over 150,000 items in a location. Over 50% of those can be delivered by drone, Cathey said.

Challenges and Setbacks

Yet the rollout of speedy deliveries across the U.S. has come with stops and starts. Three years ago, Walmart announced a plan to expand drone deliveries with DroneUp so it would be able to reach 4 million households across six states fulfilled from 37 stores in parts of Arizona, Arkansas, Florida, Texas, Utah, and Virginia. At the time, the company’s leaders said the retailer would be able to deliver over 1 million packages by drone in a year by using those sites. The rollout never stuck.

Current Progress and Comparison to Amazon

Walmart’s drone delivery count so far is modest. The company did not share the specific count, but said it has racked up a total of more than 150,000 drone deliveries since 2021. Chief competitor Amazon’s expansion of drone deliveries has been slow-going, too. The e-commerce giant set a goal to deliver 500 million packages by drone per year by the end of the decade through its service, Prime Air.

Testing and Expansion

Walmart has tested drone deliveries in Northwest Arkansas, near its hometown of Bentonville, and scaled them to reach most of the population in the Dallas-Forth Worth area. Several drone operators, including Zipline, Flytrex, DroneUp, and Wing, have powered Walmart’s deliveries, but the retailer has not provided the financial terms of the deals or the amount of money it has made from sales delivered by drones.

Future Plans and Goals

Kieran Shanahan, chief operating officer of Walmart U.S., said the company wants to offer "flexibility and convenience" with drones, along with speedier deliveries by van. "We see it as part of a broader ecosystem of things," he said. "And who knows what five years, 10 years time will bring as new technologies and capabilities unlock?"

Conclusion

Walmart’s expansion of drone deliveries is a significant step towards competing with Amazon and providing faster and more convenient delivery options to its customers. While there have been setbacks and challenges, the company remains committed to its goal of providing speedy and flexible delivery options.

FAQs

Q: What states will Walmart’s drone deliveries be available in?
A: Walmart’s drone deliveries will be available in a total of five states: Arkansas, Florida, Georgia, North Carolina, and Texas.
Q: How do customers request drone deliveries?
A: Customers will request a delivery through the app of Wing, the operator who flies the drones through a deal with Walmart.
Q: What is the delivery time for drone deliveries?
A: Drone deliveries take 30 minutes or less.
Q: What items are most frequently delivered by drone?
A: Some of the most frequently delivered items include eggs, ice cream, pet food, and fresh fruit.
Q: How many items can be delivered by drone?
A: Over 50% of the 150,000 items in a Walmart store can be delivered by drone.

As the Department of Government Efficiency (DOGE) concludes its cost-cutting initiatives, the ripple effects of mass layoffs continue to impact federal employees and the broader job market. The Trump administration’s aggressive downsizing efforts have led to significant job losses across various federal agencies, raising concerns about the long-term implications for public services and the economy.

Economic Uncertainty and Job Market

The broader economic landscape remains volatile, with trade tensions and policy shifts contributing to uncertainty. While the April jobs report exceeded expectations, private-sector hiring has slowed, with ADP reporting the lowest growth in over two years. Companies are increasingly citing artificial intelligence (AI) as a factor in workforce reductions, signaling a shift in hiring practices and organizational structures.

Companies Announcing Layoffs

Several major corporations have announced significant layoffs in recent weeks:

• Procter & Gamble: The consumer goods giant plans to cut 7,000 jobs, approximately 15% of its non-manufacturing workforce, over the next two years as part of a restructuring effort aimed at streamlining operations and reducing costs.

• Microsoft: The tech company announced the reduction of about 6,000 employees, or 3% of its global workforce, to flatten management layers and improve efficiency.

• Citigroup: The financial institution is set to reduce its staff by around 3,500 positions in China, primarily affecting the information technology services unit, as part of a broader reorganization strategy.

• Walmart: The retail giant plans to eliminate approximately 1,500 jobs across various divisions, including global technology and U.S.-based e-commerce fulfillment, to simplify operations amid rising costs.

• Klarna: The fintech company has reduced its headcount by 40%, attributing the cuts to AI investments and a hiring freeze that led to attrition.

• CrowdStrike: The cybersecurity firm announced plans to cut 500 employees, about 5% of its staff, citing AI’s transformative impact on the industry and the need to evolve its operating model.

• Disney: The entertainment conglomerate is set to lay off several hundred employees worldwide across various divisions, including film and TV marketing, as part of efforts to enhance operational efficiency.

• Chegg: The online education company will lay off 248 employees, representing 22% of its workforce, in response to the growing influence of AI-powered tools in the education sector.

• Amazon: The e-commerce leader plans to eliminate about 100 jobs in its devices and services division, including teams working on Alexa and Echo products, as part of ongoing cost-trimming efforts.

• Warner Bros. Discovery: The media company will lay off fewer than 100 employees across various divisions, aligning with its recent reorganization into two main units: global linear networks and streaming and studios.

Impact on Federal Workers

The federal workforce has not been immune to these trends. The Trump administration’s initiatives have led to the loss of nearly 60,000 federal jobs, with projections indicating further reductions in the coming year. Agencies such as the Department of Education, Department of Veterans Affairs, and the Environmental Protection Agency have experienced significant staffing cuts, prompting legal challenges and public outcry.

In particular, the Department of Education faces a potential 40% reduction in staff, a move currently under judicial review. Similarly, the Department of Veterans Affairs plans to cut 15% of its workforce, raising concerns about the impact on veteran services. The Environmental Protection Agency has already laid off over 300 employees, affecting its capacity to enforce environmental regulations.

Legal and Political Challenges

These sweeping changes have sparked legal battles and political debates. Federal judges have issued injunctions blocking some of the proposed layoffs, citing the need for congressional approval and the potential harm to public services. The administration has appealed these decisions, seeking Supreme Court intervention to proceed with its downsizing plans.

Critics argue that the rapid implementation of these workforce reductions undermines the stability and effectiveness of federal agencies. Supporters contend that the measures are necessary to eliminate inefficiencies and reduce government spending.

Conclusion

As the federal government and private sector navigate these transformative changes, the job market remains in flux. The integration of AI, economic pressures, and policy decisions continue to reshape employment landscapes, leaving many workers facing uncertainty. The long-term effects of these developments will depend on the balance struck between innovation, fiscal responsibility, and the preservation of essential public services.

Lululemon beat Wall Street expectations for fiscal first-quarter earnings Thursday, but cut its full-year earnings guidance, citing a “dynamic macroenvironment.” As the company navigates tariffs and fears about a slowing U.S. economy, CEO Calvin McDonald said in a news release that “we intend to leverage our strong financial position and competitive advantages to play offense, while we continue to invest in the growth opportunities in front of us.”

First-Quarter Earnings and Revenue

He said on a conference call with analysts that he is “not happy” with U.S. growth and said U.S. consumers are being cautious and intentional about their buying decisions. The company reported net income for the fiscal first quarter of $314 million, or $2.60 per share, compared with a net income of $321 million, or $2.54 per share, a year earlier. First-quarter revenue rose to $2.37 billion, up from about $2.21 billion during the same period in 2024.

Comparison to Wall Street Expectations

Here’s how the company did for its first quarter compared with what Wall Street was expecting for the quarter ended May 4:

• Earnings per share: $2.60 vs. $2.58 expected
• Revenue: $2.37 billion vs. $2.36 billion expected

Full-Year Guidance and Tariffs

The company cut its full-year earnings guidance. It expects its full-year earnings per share to be between $14.58 to $14.78. Previously, it expected full-year earnings per share to be in the range of $14.95 to $15.15 for the year. Analysts anticipated earnings per share of $14.89. Chief Financial Officer Meghan Frank added on the call that the brand is planning to take “strategic price increases, looking item by item across our assortment,” to mitigate the effect of tariffs.

Price Increases and Tariff Impacts

“It will be price increases on a small portion of our assortments, and they will be modest in nature,” she said, adding that those hikes will start rolling out toward the second half of the current quarter and into the third quarter. Lululemon’s report comes after a string of retailers reduced or withdrew their guidance and said they would hike prices because of uncertainty surrounding President Donald Trump’s tariff regime.

Market Reaction and Industry Comparison

Shares of the apparel company plunged about 23% in extended trading. Among Lululemon’s rivals in the athleticwear category specifically, Gap, which owns athleisure brand Athleta, reported last week that it expects tariffs to impact its business by $100 million to $150 million. Nike told CNBC last month it would begin raising prices on a wide range of products, though it did not specify whether tariffs were the reason for the hikes.

Outlook and Gross Margin

On Thursday’s earnings call, McDonald acknowledged the uncertainty that tariffs have brought on the business, but said he believes the brand is “better positioned than most” to navigate the current environment. Lululemon expects second-quarter revenue to total between $2.54 billion and $2.56 billion. It also anticipates full-year fiscal 2025 revenue to be $11.15 billion to $11.3 billion — unchanged from its last forecast. Gross margin was 58.3%, ahead of the 57.7% that analysts had expected.

Conclusion

In conclusion, Lululemon’s first-quarter earnings report showed a beat in earnings and revenue, but the company cut its full-year earnings guidance due to the impact of tariffs. The company plans to take strategic price increases to mitigate the effect of tariffs. The market reacted negatively to the news, with shares plunging 23% in extended trading.

FAQs

Q: What were Lululemon’s earnings per share for the first quarter?
A: $2.60 per share.
Q: What was Lululemon’s revenue for the first quarter?
A: $2.37 billion.
Q: Why did Lululemon cut its full-year earnings guidance?
A: Due to the impact of tariffs and a “dynamic macroenvironment”.
Q: What is Lululemon’s plan to mitigate the effect of tariffs?
A: The company plans to take strategic price increases on a small portion of its assortments.
Q: How did the market react to Lululemon’s earnings report?
A: Shares plunged 23% in extended trading.