Walmart (WMT) once again surprised Wall Street, sending its stock up 7% in early trading on Thursday.
America’s largest retailer reported first-quarter 2025 sales of $161.51 billion, beating expectations of $159.58 billion, and adjusted earnings per share of $0.53 versus expectations. It exceeded the price by $0.60.
“Customers continue to come to Walmart for convenience, not just value,” Walmart Chief Financial Officer John David Rainey told Yahoo Finance. “We can see that wallets are still tight. [customers] Still looking for value. ”
“The momentum we’re seeing across the business is driven by increased unit sales and transaction volume, as well as market share growth in general merchandise,” CEO Doug McMillon said on a conference call with investors. These results are not due to inflation.”
Total U.S. same-store sales increased 3.9% year-over-year, led by a 4.4% increase at Sam’s Club as Americans sought great deals on groceries. The wholesale retailer has reached record levels of membership and plus membership, resulting in an increase in membership revenue of more than 13%.
At the company’s eponymous stores, same-store sales rose 3.8% as customers visited the stores more frequently, although the number of tickets sold was flat. The company hinted that it was gaining market share among high-income households.
Global e-commerce sales increased 21%, driven by in-store pickup and delivery and online marketplaces.
The results come as the company plans to cut hundreds of jobs and ask employees to relocate to its headquarters in Bentonville, Arkansas. WSJ reported on Tuesday.
Walmart is the largest employer in the United States, with 1.6 million employees in the United States.
During the quarter, the company also conducted its 12th stock split in the past 50 years. The company’s stock has risen 13.9% this year, outperforming the S&P 500 (^GSPC) 10% increase.
Ahead of the report, UBS analyst Michael Lasser said in a note to clients that “the stock has room to rise.” He said the first quarter provided “further evidence that the stock is a good fit for what the market is looking for right now: a consistent business that is better insulated than other stocks from ongoing macro pressures.” He added that it was necessary.
“Walmart is in a dual tailwind position over the next few years as it captures both low-end and high-end consumers,” Deutsche Bank analyst Christina Katai told Yahoo ahead of the report. Finance spoke to on the phone.
HSBC analyst Daniela Bretthauer said ahead of the report that the stock was a top pick.
“The future of grocery shopping is increasingly omnichannel, and Walmart is the largest grocer in the United States,” Bretthauer told Yahoo Finance. “Online, we have a big player in Amazon, but in groceries, Walmart has a big advantage.”
Merchandise sales were down in the low single digits, consistent with the past three quarters. However, U.S. grocery sales rose mid-single digits due to increased sales of fresh produce and private label products, Stifel managing director Mark Astrachan said in a note to clients following the results. is written in..
In addition to its pricing power and economic scale, the company benefits from technology investments and $9 billion in store renovations.
Recently, the company introduced a new private label brand. something betteroffering high-quality, trendy items at prices from less than $2 to less than $15.
Its highly profitable advertising business also grew sales, with global sales up 24% and U.S. sales up 26%.
The company’s subscription business, Walmart+, also grew by double digits, with CEO McMillon saying its members engaged more often and spent more than other customers.
Revenue breakdown
Here’s what Walmart reported for the first quarter of fiscal 2025, compared to Wall Street estimates compiled by Bloomberg:
Revenue: $161.51 billion vs. $159.58 billion
Adjusted earnings per share: $0.60 vs. $0.53
Same-store sales growth across the U.S.: 3.9% vs. 3.42%
Walmart U.S. same-store sales growth: 3.8% vs. 3.45%
Sam’s Club US same-store sales growth: 4.4% vs. 3.3%
Walmart’s US e-commerce growth: 22% vs. 13.33%
For the full fiscal year 2025, the company expects sales to range from 3% to high 4% and operating profit from 4% to high 6%.
“We plan to reconsider our full-year outlook due to the withdrawal.” [the] Second quarter. This is more in line with our historical pace of updates, recognizing early momentum but taking into account macro uncertainties and much of the year still ahead. It is consistent with our philosophy as a management team to remain cautious initially. It’s us,” Walmart’s CFO John David Rainey said on a conference call with investors after the first quarter of 2025 earnings.
Correction: A previous version of this article misspelled Walmart CEO Doug McMillon’s last name. We apologize for the error.
Brooke DiPalma is a senior reporter at Yahoo Finance. Follow her on Twitter @brooke di palma Or email bdipalma@yahoofinance.com.
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