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BENTONVILLE, Ark. — Walmart posted strong sales and profit growth for its fiscal first quarter ended April 26th. Revenues increased 6% in the quarter, to $161.5 billion, and operating income grew at a faster pace of 9.6% (13.7% adjusted). Walmart U.S. comparable store sales grew 3.8% for the 13-week quarter, and global eCommerce sales grew 21%, led by storefulfilled pickup and delivery and marketplace sales. Global advertising business grew 24%, including 26% for Walmart Connect in the U.S.
“Our team delivered a great quarter,” Walmart president and CEO Doug McMillon said. “Around the world our goal is simple – we’re focused on saving our customers both money and time. It’s inspiring to see how our associates are simultaneously executing the fundamentals and innovating to make shopping with us more enjoyable and convenient. We’re people-led and tech-powered, and that combination is propelling our business.”
For Walmart U.S., the company said sales reflected strength in transaction counts and unit volumes; like-for-like inflation slightly positive. The retailer says its value-convenience proposition is resonating with all consumers, with share gains primarily driven by upper-income households. Walmart said the number of transactions was up 3.8%, with average spend steady from last year.
Sam’s Club posted solid comp sales, led by food and consumables as well as increases in transactions and unit volumes, and the warehouse club retailer gained dollar and unit market share in grocery, while the chain’s 18% increase in eCommerce sales of was led by club-fulfilled curbside and delivery. Sam’s Club also reported strong growth in membership income, which increased 13.3%, with record total membership and Plus penetration at quarter end.
Looking ahead, Walmart said it expects its results for the year to come in at the high end or above its original guidance. For the second quarter, the company expects consolidated net sales to increase 3.5% to 4.5%, consolidated operating income to grow by 3.0% to 4.5%, and adjusted earnings per share to advance by $0.62 to $0.65.
