Walmart: Group Revenue Up 2.4% In Q1

Walmart has published a first quarter trading update, covering the three months ended April 30, 2022.

• Company delivered strong top-line growth globally. 
• Total revenue was $141.6 billion, up 2.4%, or 2.6% in constant currency(2).
• Growth negatively affected by $5.0 billion due to divestitures(3) and $0.4 billion from currency.

First Quarter Highlights:

• Walmart U.S. comp sales(1) grew 3.0% and 9.0% on a two-year stack. eCommerce growth was 1%, or 38% on a two-year stack. 
  
  
• Sam’s Club comp sales(1) increased 10.2%, and 17.4% on a two-year stack. Membership income increased 10.5%. 
  
  
• Walmart International net sales were $23.8 billion, a decrease of $3.5 billion, or 13.0%, negatively affected by $5.0 billion due to divestitures, and $0.4 billion from currency fluctuations. Positive comps across all markets. 

• Global advertising business(4) grew more than 30%.
  
  
• 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.
  
  
• 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 23.0%, negatively affected by $0.3 billion from divestitures.

Doug McMillon, President and CEO, said: “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.”

Source : Walmart

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