Walmart Q1 Growth Driven By High Income Shoppers

First quarter revenue at Walmart was up 6% company-wide as share gains driven by upper-income households were cited as a key driver of growth.

For the three months ended April 30, consolidated revenue was $161.5 billion, an increase of 6% year-over-year. Global eCommerce sales grew 21%, led by store-fulfilled pickup & delivery and marketplace. Consolidated net income was $5.1 billion, up 205.1% from the same quarter the previous year. Diluted earnings per share were $0.63, an increase of 200%. 

“Our team delivered a great quarter,” said Doug McMillon, president and CEO of Walmart. “Around the world our goal is simple - we’re focused on saving our customers both money and time. It’s inspiring to see how our associates are simultaneously executing the fundamentals and innovating to make shopping with us more enjoyable and convenient. We’re people-led and tech-powered, and that combination is propelling our business.”

By division, Walmart U.S. sales were up 4.8% to $108.7 billion. Excluding fuel, comparable store sales were up 3.8%. The average transaction was also up 3.8% but the average ticket was flat year-over-year. E-commerce growth was up 22% led by store-fulfilled pickup & delivery and marketplace.

Company officials reported share gains driven primarily by upper-income households. Inventory levels declined 4.2% with sustained strong sales and higher in-stock levels.

Sales at Sam’s Club increased by 4.6% and comparable store sales exclusive of fuel sales were up 4.4%. The quarterly growth at Sam’s was attributed to growth in food and consumables and increases in transactions and unit volumes.

Looking ahead, the company expects net sales in the second quarter to increase from 3.5% to 4.5% and operating income to grow from 3% to 4.5%. Walmart now expects to be at the high end or slightly above its previous guidance for net sales growth of 3% to 4% and operating income growth of 4% to 6% for the full fiscal year.