Walmart Q1 Sales Rise, But Warns of Potential Tariff-Driven Price Hikes
First-quarter sales at Walmart were up 2.5% as the retailer reported strong growth in health & wellness and grocery.
However, the gains in revenue were overshadowed by a warning from company CEO Doug McMillon, who said prices could rise in the face of tariffs imposed by the Trump administration.
During Walmart’s conference call to discuss quarterly results, McMillon said the Bentonville, Ark.-based retailer will do its best to keep prices as low as possible.
“But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” he said. “The higher tariffs will result in higher prices.”
Total sales in the quarter were $165.6 billion, up from $161.5 billion in the comparable quarter the previous year. Adjusted operating income rose 3% to $7.3 billion, and adjusted earnings per share grew 1.7% to $0.61.
Sales in Walmart’s U.S. division increased 3.2% to $112.2 billion, as comparable store sales—excluding the impact of fuel sales—were up 4.5%. Transactions rose 1.6%, and the average ticket increased 2.8%.
Company officials said sales growth was led by grocery and health & wellness, with e-commerce sales up 21%, reflecting strength in store-fulfilled pickup and delivery. Inventory increased 4.5%, while the retailer maintained healthy in-stock levels.
At Sam’s Club, sales rose 2.9% to $22.1 billion. Comparable store sales excluding fuel grew 6.7%. Transactions were up 4.8%, and the average ticket grew 1.7%.
Similar to Walmart stores, Sam’s Club sales were led by grocery and health & wellness, with the warehouse club reporting a fourth consecutive quarter of positive general merchandise sales. Comparable store sales growth was driven by increases in transactions and unit volumes, and e-commerce sales were up 27%, with delivery growth rising approximately 160%. Membership income grew 9.6%, with steady growth in member counts, renewal rates, and Plus members.
Looking ahead, the company is forecasting second-quarter sales growth of between 3.5% and 4.5%. Walmart’s net sales in the second quarter of its previous fiscal year were $167.8 billion.
