US retailer Walmart's revenue surges 6% to $161.5 bn in Q1 FY25

The company's consolidated gross margin rate improved by 42 basis points, driven by enhancements across segments, with Walmart US leading the charge. Consolidated operating income rose by $0.6 billion, or 9.6 per cent, while adjusted operating income saw an impressive 13.7 per cent increase, Walmart said in a press release.

Global e-commerce sales grew by 21 per cent, propelled by store-fulfilled pickup and delivery services, as well as marketplace expansion. The company's adjusted earnings per share (EPS) stood at $0.60. Additionally, global inventory decreased by 2.7 per cent, including a 4.2 per cent reduction for Walmart US, with in-stock levels remaining healthy.

In the US market, Walmart experienced strong transaction counts and unit volumes, with like-for-like inflation slightly positive. The value-convenience proposition resonated well with consumers, leading to market share gains primarily driven by upper-income households. E-commerce growth in the US reached 22 per cent, led by store-fulfilled pickup and delivery, as well as the marketplace.

The gross profit rate for Walmart US increased by 46 basis points, bolstered by higher membership income. However, operating expenses deleveraged by 48 basis points. Inventory levels declined by 4.2 per cent, reflecting sustained strong sales and higher in-stock levels.

Internationally, Walmart's net sales on a constant currency basis grew by 10.7 per cent, with Walmex, China, and Flipkart driving the growth. E-commerce sales in the international segment rose by 19 per cent, supported by store-fulfilled pickup and delivery and the marketplace. The gross profit rate increased by 32 basis points, and operating income on a constant currency basis surged by 27.2 per cent.

Sam’s Club US reported an 18 per cent growth in e-commerce sales. The quarter saw strong growth in membership income, which rose by 13.3 per cent, achieving record total membership and Plus penetration by the quarter's end. The gross profit rate for Sam’s Club increased by 58 basis points, although operating expenses deleveraged by 17 basis points. Inventory levels declined by 4.9 per cent, supported by sustained strong sales and higher in-stock levels.

“Our team delivered a great quarter. Around the world our goal is simple—we’re focused on saving our customers both money and time. It’s inspiring to see how our associates are simultaneously executing the fundamentals and innovating to make shopping with us more enjoyable and convenient. We’re people-led and tech-powered, and that combination is propelling our business,” said Doug McMillon, president and CEO, Walmart.

Fibre2Fashion News Desk (DP)