Walmart Sees 6% Rise In US Q1 Sales

Walmart has reported on first quarter trading, covering the 13 week period ended 30th April 2021.

Total revenue was $138.3 billion, an increase of $3.7 billion, or 2.7%. Revenue was negatively affected by approximately $4.2 billion related to recent divestitures in Walmart International. Excluding currency(2), total revenue would have increased 2.1% to reach $137.4 billion. 

Walmart U.S. comp sales(1) increased 6.0% with market share gains in grocery. Operating income increased 26.8%.Walmart U.S. eCommerceWalmart U.S. eCommerce sales grew 37% with strong results across all channels, contributing approximately 360 basis points to comp sales. Sales more than doubled over the last two years. 

Sam’s Club comp sales(1) increased 7.2%, and eCommerce sales grew 47%. Reduced tobacco sales negatively affected comp sales by approximately 340 basis points. Membership income increased 12.7%, and total member count reached an all-time high.

Walmart International net sales were $27.3 billion, a decrease of $2.5 billion, or 8.3%, and eCommerce sales increased 49%. Net sales were negatively affected by $4.2 billion, or 14.1%, related to recent divestitures, and changes in currency exchange rates positively affected net sales by approximately $0.9 billion.

Consolidated operating income was $6.9 billion, an increase of 32.3%, with strength across the company. Recently divested businesses in the U.K. and Japan contributed operating income of $289 million, or $0.07 of EPS.

Adjusted EPS(2) excludes the effects, net of tax, of: net losses on equity investments of $0.57; and an incremental loss on the sale of our operations in the U.K. and Japan of $0.15.

Doug McMillon, President and CEO, Walmart, commented:

“This was a strong quarter. Every segment performed well, and we’re encouraged by traffic and grocery market share trends. Our optimism is higher than it was at the beginning of the year. In the U.S., customers clearly want to get out and shop. We have a strong position as our store environment improves and eCommerce continues to grow. Stimulus in the U.S. had an impact, and the second half has more uncertainty than a typical year. We anticipate continued pent-up demand throughout 2021. Our results reflect the continued hard work and commitment our associates have shown throughout the pandemic — serving others and helping provide vaccines — and we’re grateful to them.” 

View the full release here.

Source : Walmart

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