Walmart earnings beat as retailer sees robust growth in grocery and online sales

People talk outside a Wal-Mart Pickup-Grocery store in Bentonville, Arkansas.Rick Wilking | ReutersWalmart’s first-quarter earnings surged past Wall Street’s estimates on Tuesday as the company reported strong grocery sales and e-commerce growth, and raised its outlook for the year.The big-box retailer said more shoppers have headed to its stores and website to spend stimulus checks and to get ready to socialize again as Covid-19 cases decline and vaccination rates rise. Notably, e-commerce sales in the U.S. rose by 37% even as consumers return to more normal activities. Walmart CEO Doug McMillon said the company anticipates “pent-up demand” throughout 2021.The company raised its outlook for the fiscal year. It expects earnings per share and Walmart U.S.’s operating income to increase in the high single-digits. It reiterated its guidance that Walmart U.S. and Sam’s Club same-store sales will grow in the low single-digits excluding fuel and tobacco.”Our optimism is higher than it was at the beginning of the year,” he said in a press release. “In the U.S., customers clearly want to get out and shop.”Here’s what the company reported for the fiscal first quarter ended April 30, according to Refinitiv consensus estimates:Earnings per share: $1.69 adjusted vs. $1.21 expectedRevenue: $138.31 billion vs. $131.97 billion expectedIn the quarter, Walmart reported net income rose to $2.73 billion, or 97 cents per share, from $3.99 billion, or $1.40 per share, a year earlier. Excluding items, the company earned $1.69 per share. Analysts were expecting Walmart would earn $1.21 per share, according to Refinitiv.Total revenue grew by nearly 3% to $138.31 billion from $134.62 billion a year earlier, exceeding Wall Street’s expectations of $131.97 billion.Walmart’s same-store sales in the U.S. grew by 6%, higher than the increase of 0.9% expected by analysts, according to a StreetAccount survey. The company said those sales got a lift from grocery sales, as it gained market share.Same-store sales for Walmart subsidiary, Sam’s Club, jumped by 7.2% excluding fuel — more than the 1.2% growth expected by analysts.This story is developing. Please check back for updates.


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