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Walmart Q1 income soars amid e-commerce, same-store sales gains

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Walmart's first-quarter revenue increased 6% to $161.5 billion.

Walmart Inc. reported a strong quarter with earnings, sales and same-store sales that beat expectations as it continues to win over more higher-income shoppers — in store and online. 

The retail giant’s net income rose to $5.10 billion, or $0.63 per share, for the quarter ended April 30, compared with $1.67 billion, or $0.21 per share, in the year-ago period. Adjusted earnings were $0.60 per share, topping the $0.53 analysts had expected.   

Walmart's net revenue increased 6% to $161.5 billion, ahead of estimates for $159.57 billion. (The increase included a benefit of about 1% from an additional selling day in the period.) Walmart’s U.S. sales rose 4.6% to $108.7 billion. Transactions increased by 3.8%. 

“The momentum we see across the business is driven by growth in units sold and transaction counts as well as market share gains, including general merchandise,” Walmart president and CEO Doug McMillon told analysts on the company's earnings call. “These are not inflation-driven results."

E-commerce sales soared 21% globally, including a 22% rise for Walmart U.S., fueled by store-fulfilled pickup and delivery as well as marketplace.

U.S. same-store sales rose 3.8%. At Sam’s Club, same-store sales increased 4.4%.

“The progress that we’re seeing now is driven by the in-store remodels and in e-commerce,”  McMillion said on the call.

Walmart has been updating its stores.  About 6o were remodeled in the first quarter with a total of 650 locations expected to be refreshed this year. 

The retailer’s global advertising business grew 24% during the quarter, with Walmart Connect in the U.S. rising 26%. In February, Walmart entered into an agreement to acquire smart TV maker/streaming platform provider Vizio in a deal valued at about $2.3 billion as it looks to create new opportunities to help advertisers connect with customers, as well as offer new connected TV and streaming content for consumers.

Inventory levels fell 2.7%, including a 4.2% decrease in the U.S.

“Our strong results this quarter clearly demonstrate the power of our global omni-channel retail capabilities and the team’s ability to execute with discipline,” stated Walmart CFO John David Rainey in the earnings release. “As we continue to reshape our business model, we’re focused on strategically investing in areas that reinforce our purpose and growth strategy.”

For fiscal 2025, Walmart expects full-year earnings per share to be at the “high-end or slightly above” its original guidance  of $2.23 to $2.37. The retailer expects net sales to be at the high end or above its previous growth guidance of 3% to 4%.

“Our team delivered a great quarter,” stated McMillion in the earnings release. “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.”

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