Walmart's Q2 earnings report

Walmart Raises Forecast as Q1 Profit Exceeds $5 Billion, Shares Hit Record High

May 16, 2024, 01:22 PM

Walmart reported a strong first quarter, with a profit exceeding $5 billion and significant growth in e-commerce sales, which rose by 22%. The retail giant raised its fiscal 2025 sales and profit forecast, citing easing inflation and increased demand for essentials. Walmart's sales were driven by higher transaction counts and unit volumes, with like-for-like inflation slightly positive. The company also noted a surge in high-income shoppers, who are increasingly turning to Walmart for value amid high prices. This shift contributed to a 4% boost in traffic. Walmart's CEO highlighted that these results were not inflation-driven, with general merchandise experiencing mid-single-digit deflation and food and consumables seeing low single-digit inflation. The company expects Q2 sales to increase between 3.5% and 4.5%, with operating income growth in line with that range. Additionally, Walmart's delivery business surpassed its store pickup in volume for the first time, and its shares reached a record high, making it one of the top S&P performers.