Table of Contents
BENTONVILLE, Ark. — Walmart said Tuesday that same-store sales at its U.S. stores rose by 1.1% in the fiscal first quarter but profit fell due to the strength of the dollar and the cost of investments in higher wages and the retailer’s e-commerce platform.
Walmart said Tuesday that same-store sales at its U.S. stores rose by 1.1% in the fiscal first quarter but profit fell due to the strength of the dollar and the cost of investments in higher wages and the retailer’s e-commerce platform.
U.S. stores saw their second consecutive quarter of positive sales growth after several quarterly declines.
The company reported that net profit fell to $3.34 billion, or $1.03 per share, in the three months through April 30, from $3.59 billion, or $1.11 per share, a year earlier. Revenue slipped to $114.8 billion from $114.9 billion.
"Based on recent surveys, we know that many of our U.S. customers are using their tax refunds and the extra money from lower gas prices to pay down debt or put it into saving," chief executive officer Doug McMillon said.
Walmart began a two-stage wage increase during the quarter for some of its lowest-paid employees, raising its minimum wage to at least $9 an hour. That figure will rise to $10 by next year, at an estimated cost of $1 billion.
The dollar’s strength had a greater-than-anticipated impact on first quarter results, the company said.
Labor disruptions at West Coast seaports delayed deliveries of TVs and other merchandise, particularly early in the quarter, Walmart said.
Walmart continues to invest in its e-commerce strategy. The company announced last week that it would pilot an unlimited free shipping service similar to Amazon Prime this summer.