Walmart Q1 Sales Gain 7.3% With 'Outsized' Fashion Growth

Net income increased 18.8% to $5.3 billion, and adjusted earnings per share reached 66 cents. Adjusted operating income grew 5.1%. Revenues for the quarter ended April 30 rose 7.3% to $177.8 billion, with a 5.9% increase in constant currencies. E-commerce grew 26% and advertising grew 37%. Fashion received executive praise for outsized growth, and beauty was highlighted for investments improving both online and in-store experiences. Fashion growth was described as benefiting other style-inspired categories such as home decor and beauty, including share gains. Beauty growth was attributed largely to new brands and expanded assortments. Walmart apparel is undergoing a renaissance through revamped private labels, improved store presentation, and a third-party digital marketplace bringing higher-end brands and customers.

"Net income increased 18.8 percent to $5.3 billion, while adjusted earnings per share hit the 66 cents mark that analysts had figured on, according to Yahoo Finance. Adjusted operating income grew by 5.1 percent. Revenues for the quarter ended April 30 rose 7.3 percent to $177.8 billion, a 5.9 percent increase in constant currencies. The top line was buoyed by quick growth in e-commerce, which was up 26 percent, and the advertising business, up 37 percent."

""I'm really proud of the work that the fashion team has done in Walmart U.S.," said John Furner, president and chief executive officer. "Another category that was a standout in the quarter was beauty. There have been a number of investments in the experience, both online and in stores that are making a difference." John David Rainey, chief financial officer, added that fashion had seen "outsized growth" in the first quarter."

""Fashion has a derivative benefit on other style-inspired categories like home decor, like beauty, where we continue to see great share gains and some of the best progress we've had in years. If you take beauty as a category, 75 percent of the growth in beauty came from new brands like La Roche-Posay and others. We're expanding our assortment.""

"Private labels that have been around for years are being revamped as full-fledged brands with a cohesive point of view, while the stores brought in mannequins and sharpened presentation. The third-party digital marketplace is also bringing in higher-end brands, followed by higher-end customers. Everything about Walmart is big, but investors who briefly drove the company"

Read at WWD