Walmart (WMT, Financial) saw a significant rise, up 6%, after releasing impressive first-quarter results. The company surpassed expectations with its earnings per share (EPS) and revenue. For the second quarter, Walmart provided guidance that aligns with expectations and raised its full-year revenue and adjusted EPS forecasts to the higher end or slightly above previous projections.
Key highlights from Walmart's performance include:
- Strong performance across all three operating segments, with growth in units sold and transaction counts, as well as market share gains in general merchandise.
- The Walmart US segment reported a 3.8% increase in comparable sales, bolstered by a 22% surge in eCommerce. The segment also launched Better Goods, a new private brand focused on premium quality affordable food items.
- Sam's Club US showed a rebound in comparable sales to 4.4% this quarter, driven by food and consumables.
- Walmart International experienced the strongest growth with a 10.7% increase in constant currency revenue, led by strong performances in Walmex, China, and Flipkart.
- Despite stretched consumer budgets affecting spending patterns, Walmart noted that sales are shifting towards non-discretionary categories.
Overall, Walmart's robust start to the fiscal year highlights not only strong current performance but also a promising outlook that could potentially benefit other retailers like Target (TGT, Financial), which is set to report its earnings next week on May 22.
