Walmart saw a 2.7% jump in revenue in its fiscal first quarter ending April 30.
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There’s no stopping the American consumer—at least as far as Walmart is concerned.
The big-box retailer saw a 2.7% jump in revenue in its fiscal first quarter ending April 30 as shoppers continued to flock to Walmart (ticker: WMT) for their needs and recreation. Revenue hit $138.3 billion in the quarter, topping analyst expectations of $132 billion.
Walmart posted net income of $2.7 billion or 97 cents a share, down from net income of $4 billion or $1.40 a share in the year-ago quarter. Adjusted earnings exceeded Wall Street projections of $1.22 per share, coming in at $1.69 per share when factoring out loss of sales in the United Kingdom and Japan as well as a loss on equity investments of 57 cents a share.
“This was a strong quarter. Every segment performed well, and we’re encouraged by traffic and grocery market share trends. Our optimism is higher than it was at the beginning of the year,” Doug McMillon, Walmart’s chief executive, said.
Economic stimulus helped Walmart’s fiscal first-quarter results. McMillon said that while he expects to see continued consumer pent up demand this year, the second half of the year has more “uncertainty than a typical year.”
Walmart’s same-store sales increased 6% in the U.S. even with tougher comparisons to last year’s first quarter when consumers rushed to stock their pantries during pandemic lockdowns. E-commerce sales grew 47%. The company said sales from online grocery pickup and delivery remain robust but it saw greater gains in its general merchandise segment as people spent more on recreational items and household improvements.
Sam’s Club’s comparable sales increased 7.2% from the year-ago quarter. The company said its total member count reached a record high.
Walmart’s international division saw an 8.3% drop in sales due primarily to recent divestitures and currency impacts.
The retailer raised its earnings guidance for the year, saying it expects earnings per share to grow in the high single digits.
“In the U.S., customers clearly want to get out and shop,” McMillon said.
Walmart shares advanced more than 3.8% in premarket trading.
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