The company saw a slight decline of 18 basis points in the consolidated gross margin rate due to the mix of sales. Consolidated operating expenses as a percentage of net sales were down by 58 basis points, the company said in a media release.

Consolidated operating income increased by $0.9 billion in Q1 FY24, signifying a 17.3 per cent YoY rise. This, in turn, boosted the operating margin by 34 basis points.

In the US market, Walmart reported a comparable sales growth of 7.4 per cent YoY, alongside a 27 per cent surge in e-commerce sales.

In terms of Walmart's international operations, the company posted strong growth in net sales on a constant currency basis, with China, Walmex, and Flipkart leading the way. E-commerce sales increased by 25 per cent. Furthermore, the gross margin expanded by 12 basis points over last year, and the company achieved an operating expense leverage of 111 basis points on strong growth in net sales and operating discipline. These factors contributed to a substantial 41.5 per cent growth in operating income on a constant currency basis, showcasing strength across multiple markets.

“We had a strong quarter. Comparable sales were strong globally with e-commerce up 26 per cent. We leveraged expenses, expanded operating margin, and grew profit ahead of sales. And a big thank you to our associates, who continue to step up and deliver for customers and members whenever and however they want to be served,” said Doug McMillon, president and CEO, Walmart.

Sam's Club US, Walmart's membership-only retail warehouse club, posted e-commerce growth of 19 per cent, and the segment recorded strong growth in membership income, rising by 6.3 per cent YoY—the largest quarterly member sign-up on record. Moreover, the membership count and Plus penetration reached all-time highs during the quarter.

Fibre2Fashion News Desk (DP)