In This Article:
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Revenue Growth: Increased by 4% in constant currency.
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Profit Growth: Increased by 3% in constant currency.
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International Sales Growth: Increased by 7.8%.
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Walmart US Comp Sales: Grew by 4.5%.
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Sam's Club US Comp Sales (Excluding Fuel): Increased by 6.7%.
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E-commerce Growth: Increased by 22% globally.
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Gross Margin: Increased by 12 basis points.
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Walmart US Gross Margin: Increased by 25 basis points.
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SG&A Expenses: Deleveraged by 6 basis points.
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Adjusted Operating Income Growth: Increased by 3% in constant currency.
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Adjusted EPS: $0.61, higher than guided range.
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Inventory Level: Increased by 3.8%.
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Membership Fee Income Growth: Increased by nearly 15% across the enterprise.
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Advertising Business Growth: Increased by 50% across markets.
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Stock Repurchases: $4.6 billion in Q1.
Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Walmart Inc (NYSE:WMT) achieved a 4% increase in sales and a 3% rise in profit in constant currency for the first quarter.
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E-commerce sales grew by 22% globally, with each segment delivering growth of at least 20%.
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The company reached a milestone by achieving profitability in its e-commerce business both in the US and globally.
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Walmart Inc (NYSE:WMT) is expanding its delivery capabilities, with 95% of the US population soon to have access to delivery options of three hours or less.
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The advertising business saw a 50% increase, with Walmart Connect in the US growing by 31%.
Negative Points
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Tariffs, particularly those on Chinese imports, are creating significant cost pressures, which could lead to higher prices for consumers.
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The company faces challenges in managing inventory amid the uncertainty of tariff impacts and fluctuating demand.
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General merchandise sales declined slightly, with softness in electronics, home products, and sporting goods.
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There is a risk of larger swings in financial performance from quarter to quarter due to the dynamic and fluid operating environment.
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Higher-than-expected casualty claims expenses are impacting financial results, with expectations for this trend to persist for several quarters.
Q & A Highlights
Q: Can you elaborate on what drove the profitability in Walmart's e-commerce business and what future improvements are expected? A: John Rainey, CFO, explained that the profitability was achieved due to the densification of the delivery network, which allows spreading delivery costs over more volume, and reduced delivery costs through improved supply chain infrastructure. Customers' willingness to pay for expedited delivery also contributed. John Furner, CEO of Walmart U.S., added that investments in fulfillment centers and omni-channel solutions, along with increased delivery speed, have been key drivers.