Walmart Q1 Sales Up, Inflation Dents Bottom Line

Walmart delivered strong top-line growth globally, reported total revenue of $141.6 billion, up 2.4%, or 2.6%. Although, growth was negatively affected by $5.0 billion caused by divestitures, and $0.4 billion from currency, according to the Bentonville, Ark.-based company. Walmart U.S. comp sales grew 3.0% and 9.0% on a two-year stack, gaining market share in grocery, while e-commerce growth was 1%, or 38% on a two-year stack.

Sam’s Club’s sales were a particular bright spot, with comps increasing 10.2%, and 17.4% on a two-year stack, while membership income increased 10.5%. On the other hand, Walmart International net sales were $23.8 billion, a decrease of $3.5 billion, or 13.0%, which Walmart said were negatively affected by $5.0 billion because of divestitures, and $0.4 billion from currency fluctuations. There were positive comps across all markets, however, and the company’s global advertising business grew more than 30%.

Walmart’s consolidated gross profit rate declined 87 basis points, primarily because of Sam’s Club, and 38 basis points in Walmart U.S. on elevated supply chain costs and product mix. Consolidated operating expenses as a percentage of net sales rose 45 basis points, mainly due to increased wage costs in Walmart U.S. Consolidated operating income was $5.3 billion, a decline of 23.0%, which Walmart said was negatively affected by $0.3 billion from divestitures.

Source: Wammart & progressive grocer