Walmart Inc. (NYSE: WMT) has reported its first quarter results, with some notable highlights across different segments. The company's revenue saw a growth of 2.5%, which increased to 4.0% in constant currency (cc). The operating income also witnessed growth, up by 4.3%, or 3.0% adjusted in constant currency. Ecommerce globally saw a substantial increase of 22%, with digital mix rising across all segments.
Walmart U.S. experienced comp sales growth of 4.5%, with significant expansion in health & wellness and grocery segments. The company's global ecommerce sales grew by 22%, led by store-fulfilled pickup & delivery and marketplace. The global advertising business also witnessed a substantial 50% growth, including Vizio, with Walmart Connect in the U.S. up by 31%.
Walmart's membership and other income were up by 3.7%, including a robust 14.8% growth in membership income. The company's gross margin rate increased by 12 basis points, led by Walmart U.S.
Operating income was up by $0.3 billion, marking a 4.3% increase, or 3.0% adjusted in constant currency, driven by higher gross margins and growth in membership income. The adjusted earnings per share stood at $0.61, excluding certain effects.
The company's balance sheet and liquidity also reflect strong performance, with cash and cash equivalents at $9.3 billion, total debt at $52.9 billion, and operating cash flow increasing by $1.2 billion to $5.4 billion. Walmart also repurchased 50.4 million shares, amounting to $4.6 billion, and saw a 3.8% increase in inventory, reaching $57.5 billion.
Walmart U.S. reported net sales of $112.2 billion, up by 3.2% from the previous period, and operating income of $5.7 billion, reflecting a 7.0% increase. Walmart International experienced a slight decrease in net sales, down by 0.3%, while its operating income declined by 17.5%. Walmart's Sam's Club U.S. segment reported a 2.9% increase in net sales, reaching $22.1 billion, and operating income grew by 11.5%.
The company issued guidance for the second quarter, with net sales expected to increase by 3.5% to 4.5% in constant currency, and reiterated its outlook for fiscal year 2026, maintaining its prior guidance.
As a result of these announcements, the company's shares have moved 0.99% on the market, and are now trading at a price of $96.83. If you want to know more, read the company's complete 8-K report here.
