US: Walmart Q1 Growth Boosted By Strong Online Sales

Walmart has reported a solid set of results for its fiscal first quarter, boosted in particular by soaring sales in its ecommerce division.

For the quarter, revenue was up 1.4% to $117.5bn, rising by 2.5% on a constant-currency basis. Operating profit dipped by 0.7% to $5.2bn, but was up 1.3% on a constant-currency basis.

The retail giant performed well in its home market, with total sales up 2.9% to $75.4bn and like-for-like growth of 1.4%.  The results were helped by a 1.5% increase in store traffic and improved average ticket spend.  Online sales in the US rose by 63% year-on-year, on GMV growth of 69%, with the group saying the majority of the growth was organic in nature.

At its International unit, sales declined by 3.5% to $27.1bn (+0.8% constant-currency), while the Sam’s Club banner reported a 2.8% rise to $14bn (LFL +1.6%).

NAM Implications:
  • Making Asda’s performance more troubling…
  • Meanwhile, when Walmart online and Amazon really go head-to-head…