Walmart reports mixed Q1 results
Facing U.S. inflation levels, particularly in food and fuel, Walmart reported mixed first quarter results.
Walmart's first-quarter revenue, for the period ending April 30, was $141.6 billion, an increase of 2.4%. The company noted that its revenue was negatively affected by $5 billion due to divestitures and $.4 billion from currency.
GAAP earnings per share for the quarter was $.74; adjusted EPS was $1.30.
"Across our businesses, we had a strong topline quarter. We’re grateful to our associates for their hard work and creativity. Bottomline results were unexpected and reflect the unusual environment. U.S. inflation levels, particularly in food and fuel, created more pressure on margin mix and operating costs than we expected. We’re adjusting and will balance the needs of our customers for value with the need to deliver profit growth for our future,” said Doug McMillon, Walmart president and CEO.
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Walmart's first quarter comp sales grew 3% and 9% on a two-year stack in Walmart U.S., and e-commerce sales grew 1% and 38% on a two-year stack.
Sam’s Club comp sales increased 10.2%, and 17.4% on a two-year stack, with membership income increasing 10.5%.
Walmart International’s net sales were $23.8 billion, a decrease of $3.5 billion, or 13%. Net sales were negatively affected by $5 billion due to divestitures, and $.4 billion from currency fluctuations, the company said.
In addition, the retailer noted that consolidated gross profit rate declined 87 basis points, primarily due to Sam’s Club and 38 basis points in Walmart U.S. on elevated supply chain costs and product mix.
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Consolidated operating expenses as a percentage of net sales increased 45 basis points, primarily due to increased wage costs in Walmart U.S. Consolidated operating income was $5.3 billion, a decrease of 23%, negatively affected by $.3 billion from divestitures, the company said.