Walmart's growth beyond store shelves fuels strong quarter

Walmart reported first-quarter revenue of $177.8 billion, up 7.3% year over year, and adjusted earnings per share of 66 cents, up 8.2%. U.S. comparable sales rose 4.1%, driven by higher customer traffic and increased unit volumes. Global e-commerce sales increased 26%, supported by store-fulfilled delivery, pickup, and marketplace growth. Higher fuel costs weighed on profitability, though Walmart absorbed many of the costs while investing in lower prices and expanding rollbacks. Second-quarter net sales guidance of 4% to 5% was below analysts’ expectations. Walmart gained market share across categories and income tiers, with strong general merchandise and double-digit private-brand growth. Global advertising rose 37%, Walmart Connect U.S. rose 44% excluding Vizio, marketplace sales rose nearly 50%, and membership fee revenue grew 17.4%.

"Walmart reported first-quarter revenue of $177.8 billion Thursday, up 7.3% from a year ago, while adjusted earnings per share rose 8.2%, to 66 cents. Walmart U.S. comparable sales rose 4.1%, driven by higher customer traffic and increased unit volumes. Global e-commerce sales jumped 26%, fueled by store-fulfilled delivery, pickup and marketplace growth."

"Higher fuel costs weighed on profitability. Walmart said it absorbed many of those costs while continuing to invest in lower prices and expand rollbacks. The company also issued second-quarter guidance calling for net sales growth of 4% to 5%, shy of analysts' expectations."

"Walmart continues to gain shoppers across income levels - not just consumers looking for lower prices. The retailer said it saw broad-based market share gains across categories and income tiers, led by upper-income households. General merchandise posted its highest level of share gains in five years, with strength in fashion and hardlines, while private-brand sales rose double digits during the quarter."

"Walmart's global advertising business grew 37%, while Walmart Connect U.S. - which lets brands and sellers run ads across the company's retail ecosystem - rose 44% excluding Vizio, which Walmart acquired in 2024. Marketplace sales rose nearly 50% - Walmart's strongest marketplace performance in 10 quarters. Membership fee revenue grew 17.4% globally, while Walmart+ saw strong membership growth."

Read at Axios