Walmart delivered a solid start to its fiscal year, even as higher fuel costs continued to pressure margins across its network.
First-quarter revenue jumped by 7.3 per cent to $177.8 billion, while global e-commerce sales increased 26 per cent, driven by store-fulfilled pickup and delivery services as well as marketplace growth.
John Furner, president and CEO of Walmart, said focus on convenience, product assortment, and operational efficiency continued to drive the company’s growth.
“Our teams are adopting innovative technologies, driving productivity through automation, and growing higher-margin commerce solutions,” said Furner.
“It’s a disciplined approach that’s helping us grow the business and strengthen returns.”
Operating income increased 5 per cent during the quarter, although Walmart said the result was negatively affected by higher fuel costs tied to distribution and fulfilment operations.
In the US, comparable sales at Walmart stores rose 4.1 per cent, while e-commerce sales climbed 26 per cent, supported by delivery services, advertising, and marketplace activity. Net sales for the division reached $117.2 billion.
International sales increased 18 per cent to $35.1 billion, with e-commerce growth of 27 per cent. The company said digital penetration improved across all international markets.
At Sam’s Club US, e-commerce sales rose 23 per cent, while membership and other income increased 11 per cent, helped by higher member counts, renewal rates, and growth in Plus memberships.
The grocery giant’s global advertising business also continued to expand, rising 37 per cent during the quarter, while membership fee revenue increased 17.4 per cent.
Looking ahead, Walmart expects second-quarter net sales to grow between four and five per cent, with adjusted operating income forecast to increase between seven and 10 per cent.
Neil Saunders, MD of GlobalData, said Walmart’s results highlighted the retailer’s ability to continue growing despite pressure on household budgets and weaker consumer sentiment.
“Despite a serious deterioration of consumer finances – largely because of gas prices and inflation – Walmart has retained guidance for the full fiscal year,” Saunders said.
“For a business of Walmart’s scale and with its long run of recent success, that would represent another impressive advance.”
