Walmart records higher-than-expected growth: summary of its earnings
Walmart reported sales growth during its first quarter, which exceeded market expectations, as more shoppers sought lower prices at the retail giant.
Walmart, the world’s largest retailer, reported higher-than-expected sales growth during its fiscal first quarter
According to the company’s official report published this Thursday, May 18, the company had a growth of $6.24 billion dollars, 17.3 percent more than in the same period last year; resulting in total revenue of $152.3 billion dollars, or the equivalent of 7.6 percent more year-on-year; exceeding estimates of $147.4 billion.
Added to this, the largest employer in the United States indicated that its consolidated net invoicing forecasts - that is, its net sales - will increase by 3.5 percent for the fiscal year; while its forecast of Earnings for the year are between $6.10 and $6.20, beating past earnings expectations of $5.95 - $6.05 per share in its fiscal year.
“We had a strong quarter. [Composite] sales were strong globally with eCommerce up 26%. We leveraged expenses, expanded operating margin, and grew profit ahead of sales,” Walmart CEO and Chairman Doug McMillon said. “And a big thank you to our associates, who continue to step up and deliver for customers and members whenever and however they want to be served.”
After the company’s strong numbers were released, Walmart shares rose about 2 percent shortly before the Wall Street open, as reported by the financial portal Investing.com.
Why did Walmart have such great growth?
According to an analysis by Yahoo Finance, the company’s strong performance is due to “consumers traded down from traditional supermarkets and slowed purchases of discretionary merchandise from rivals like Target (TGT).”
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Summary of earnings
Here is the summary of his earnings for the first quarter:
- Net sales: +7.6%, rising to $152.3 billion, beating estimates of $148.7 billion
- Total US same-store sales: +7.4%, beating estimates of +5.1%
- Gross profit margin: 23.7%, exceeding estimates of 23.64%
- Inventory growth: -7%, vs. estimates of -7.1%