Walmart (WMT) Beats Expectations for Q1

Walmart Inc. (NYSE:WMT) history dates back to 1962 when a businessman, named Sam Walton, opened the first Walmart Discount City store in Rogers, Arkansas. The store chain initially grew in rural areas, avoiding direct competition with the retail giants of that time. Over the years, the company established new retail formats such as Sam’s Club discount warehouses. The continued expansion in both domestic and overseas markets helped Walmart to become the world’s largest grocery chain.

The Arkansas-based retail giant recently announced better-than-expected financial results for the first quarter. Walmart reported earnings of 97 cents per share for the three months ended April 30, as compared to $1.40 per share in the same period last year. Excluding items, the adjusted profit of $1.69 per share surpassed analysts’ average estimate of $1.21 per share.

Revenue for the quarter rose 2.7 percent on a year-over-year basis to $138.3 billion, beating the consensus forecast of $132.16 billion. Same-store sales in the U.S. increased 6 percent, while e-commerce sales climbed 37 percent in the quarter.

CEO Doug McMillon expressed his satisfaction with the results. McMillon said in a statement, “This was a strong quarter. Every segment performed well, and we’re encouraged by traffic and grocery market share trends. Our optimism is higher than it was at the beginning of the year. In the U.S., customers clearly want to get out and shop. We have a strong position as our store environment improves and eCommerce continues to grow. Stimulus in the U.S. had an impact, and the second half has more uncertainty than a typical year. We anticipate continued pent-up demand throughout 2021. Our results reflect the continued hard work and commitment our associates have shown throughout the pandemic — serving others and helping provide vaccines — and we’re grateful to them.”

Walmart also updated its financial outlook for the full year. The company expects its adjusted earnings to grow in the high-single digits, as compared to a slight decline it previously projected.