Walmart’s strong first quarter driven by consumers seeking bargains with inflation still an issue
NEW YORK (AP) — Walmart Inc. reported another quarter of strong quarterly results Thursday as its low prices lured shoppers looking for discounts with… Inflation is stubbornly high.
The nation's largest retailer, based in Bentonville, Arkansas, also offered an upbeat outlook. The share rose more than 5% in pre-market trading.
Walmart, headquartered in Bentonville, Arkansas, is among the first major retailers in the United States to report quarterly results that could shed more information about how consumers feel, especially after the government announced… Unexpected flattening Spending between March and April.
Americans have remained largely resilient to inflation, supported by… Strong labor market and stable wages. But there are signs that shoppers do too backing down Under the pressure of rising prices and rising debt carrying costs. While inflation has subsided, prices for some basic items such as packaged goods and rents remain high, sapping the purchasing power of millions of people.
Home Depotthe nation's largest home improvement retailer, said this week that sales fell for the third straight quarter to start 2024 as homeowners and potential buyers grapple with rising mortgage rates and inflation.
Starbucks Last month, the company lowered its sales forecast for this year as visits to its cafes around the world slowed. The decline in spending in US stores was worse than expected.
Walmart has launched new initiatives as it faces increasing pressure to increase its sales Amazon It became an increasing threat.
This month, Walmart launched its biggest product Food brand Within 20 years in terms of breadth of items, hoping to reach younger customers who are not loyal to grocery brands and want affordable foods.
The brand, called Bettergoods, has been a hit Walmart stores And the company's online shopping website. Walmart said it expects to have 300 products by the fall ranging from frozen foods to dairy products to coffee and chocolate.
Walmart also attracts families with incomes exceeding $100,000 a year, and has focused on its home and fashion goods so it can retain them.
Walmart also announced in February its purchase Smart TV maker Vizio For $2.3 billion to boost its advertising business. The deal gives Walmart access to Vizio's SmartCast operating system, which will allow Walmart to provide its suppliers with the ability to display ads on streaming devices.
But Walmart has been downsizing in areas where it has not performed well, and said last month it would close its business Health centers and virtual care service.
Walmart reported earnings of $5.10 billion, or 63 cents per share, for the quarter ended April 30. This compares to $1.67 billion, or 21 cents per share, in the same period last year. Adjusted earnings per share were 60 cents, far ahead of estimates of 53 cents per share, according to FactSet analysts.
Revenue rose 6% to $161.51 billion in the quarter, up from $152.3 billion in the same quarter last year. Analysts expected $159.6 billion, according to FactSet.
Comparable store sales — those from existing stores and online stores over the past 12 months — rose 3.8% at Walmart's U.S. stores, slightly slower than comparable store sales. 4% in the fourth quarter. Metric rose 4.9% In the third fiscal quarter. Global e-commerce sales rose 21% in the fourth quarter, compared to 23% during the fourth quarter and 15% in the previous quarter.
The average ticket — the amount shoppers spent per trip — was unchanged in the latest quarter compared to last year, even as the number of transactions rose 3.8%.
Walmart said it expects sales for the current year to be at or slightly above the company's guidance.
