Thursday, May 16th, 2024It’s a big morning for economic data. What remains to be seen is whether once it is all digested whether investors will retain the appetite to drive market indices further into all-time highs; the Dow, Nasdaq and S&P 500 all closed at record levels Wednesday. Currently, we’re up +20 points on the Dow, +2 points on the S&P and +8 for the Nasdaq, but these figures are all directly prior to the economic prints being released.Initial Jobless Claims were good again. A headline total of 22 ...

Walmart Inc. (WMT) began fiscal 2025 on a bright note, with the first-quarter top and bottom lines growing year over year and surpassing the Zacks Consensus Estimate. Revenues rose across all segments, and the company’s e-commerce penetration increased in all markets due to store-fulfilled pickup & delivery and marketplace.Encouragingly, management anticipates being at the upper end or slightly higher than its earlier net sales, adjusted operating income and adjusted earnings per share (EPS) guidance for fi ...

Financial Data and Key Metrics - Total net sales grew 5.7% on a constant currency basis, exceeding guidance of 4% to 5% growth [20] - Adjusted operating income grew 12.9% in constant currency, more than 700 basis points higher than sales growth [23] - Consolidated gross margin expanded 42 basis points, driven by lower markdowns and favorable business mix [23] - Global e-commerce growth was 21% in Q1, with e-commerce losses narrowing, particularly in the U.S. where net delivery cost per order improved nearly 40% [26] - Adjusted EPS of $0.60 per share, compared favorably to guidance of $0.49 to $0.52 [32] Business Line Performance - Walmart U.S. comp sales grew 3.8%, with e-commerce growth of 22% led by store-fulfilled pickup and delivery, marketplace, and advertising [22] - Sam's Club U.S. comp sales, excluding fuel, grew 4.4%, with Member's Mark private brand driving high-single-digit growth [22] - Walmart International sales grew 10.7% in constant currency, with e-commerce sales up 19% [21] - Global advertising grew 24%, led by 26% growth in Walmart Connect U.S. and 27% growth internationally [29] - Membership income grew over 13% at Sam's Club U.S., with Walmart Plus also growing double-digits [29] Market Performance - International markets led by Walmex, China, and Flipkart, with strong seasonal events and early improvements in general merchandise sales [21] - In India, Flipkart same-day delivery expanded to 20 cities, with orders growing over 150% [17] - In China, one-hour delivery grew to 55 million orders during Chinese New Year [17] - In Chile, 60% of e-commerce orders were delivered same day [17] Strategy and Industry Competition - Company is focused on improving customer and member experiences, being great merchants, building newer businesses, and improving returns [18] - Investments in automation, store remodels, and digital tools are widening competitive advantages [19] - Expansion of Walmart Luminate into Mexico and Canada to enhance data analytics and insights [12] - Closure of U.S. health care clinics due to profitability challenges, with continued focus on pharmacy and optical businesses [14][15] Management Commentary on Operating Environment and Future Outlook - Consumer economic conditions have been relatively consistent since the start of the year, with value-seeking behaviors continuing [33] - Company expects Q2 sales to increase between 3.5% and 4.5%, with operating income growth in line at roughly 3% to 4.5% [34] - Full-year guidance will be revisited after Q2, with early momentum recognized but prudence maintained due to macro uncertainty [35] Other Important Information - Company closed 51 Walmart Health Centers, resulting in a charge of $0.02 per share in Q1 [32] - Rollback counts in grocery increased 45% year-over-year in April, driving customer engagement and volume growth [25] - Private brand sales showed strong momentum, with grocery penetration at 30 basis points in Q1 [26] Q&A Session Summary Question: Lower-end consumer trends and contribution to comps [38] - Consumer spending has been consistent across income groups, with more growth from high-end consumers [40] - Rollbacks in food categories and a shift towards eating at home are expected to benefit Walmart for the remainder of the year [41] Question: Consumer environment and investment flexibility [43] - Company remains disciplined in managing price gaps and has flexibility to make further price investments if needed [45] - Investments in associates and technology continue to be part of the plan [45] Question: Gross margin strength and deflation impact [47] - Gross margin improvement driven by newer businesses like advertising and membership, not price increases [49] - Inventory management improvements and reduced markdowns also contributed to gross margin expansion [50] Question: Sustainability of performance and key metrics [53] - Company focuses on execution and customer experience, with a 900 basis point improvement in perfect order scores in Q1 [56] - Convenience and value are key drivers of growth, regardless of the external environment [54] Question: International EBIT structure and Flipkart contribution [64] - International operating income grew 27%, with strong performance in Walmex, China, and Flipkart [65] - Flipkart achieved EBITDA positivity for the last two quarters, with growth in premiumization [68] Question: General merchandise categories and AI opportunities [69] - Strong growth in general merchandise categories like apparel, home, and electronics, driven by value and innovation [70] - Progress in AI-driven search and marketplace expansion are key opportunities for growth [74] Question: Operating expenses and Q2 investment plans [76] - Q2 will see planned technology investments and higher depreciation, with some seasonal benefits from Q1 unlikely to repeat [77] Question: Marketplace growth and general merchandise comps [80] - Marketplace growth is providing customers with more options, particularly in categories like pets, beauty, and furniture [81] - General merchandise mix impacted by food inflation, but share gains are strong [83] Question: Higher income household engagement [85] - Higher income households are increasingly engaging with Walmart due to convenience and value, with delivery growth exceeding pickup [86] - Fresh food quality improvements and private brands like Better Goods are resonating across income groups [87] Question: General merchandise trends and monthly performance [91] - Consumer spending has been consistent, with strong performance in March due to Easter and favorable weather [92] - Inventory management and value focus are key to managing mix and margins [93] Question: Walmart Plus value proposition [95] - Walmart Plus is growing double-digits, driven by convenience and improved order fulfillment [96] Question: Inflation outlook for the year [98] - Inflation is expected to remain close to Q1 levels, with general merchandise deflationary and food/consumables slightly inflationary [99]

Three years after its launch in the United States, Walmart Luminate, the retailer’s insights solution, is being rolled out worldwide.Walmart’s data analytics product suite will be expanded to Walmex in Mexico before being offered by Walmart Canada later this year, according to a Thursday (May 16) press release.“Since we launched Walmart Luminate, we’ve successfully aided in optimizing retail strategies — from product assortment to product development — leveling the playing field for suppliers of all sizes,” ...

Key PointsWalmart had a blowout quarter, outperforming on the top and bottom lines, with revenue growth accelerating sequentially. The quarter was FCF negative but is not a worry, with earnings and cash flow expected to improve as the year progresses.Capital returns are reliable and include $1.1 billion in repurchases and a dividend in Q1. 5 stocks we like better than WalmartWalmart’s NYSE: WMT stock is rallying because of its industry-leading position and persistent growth. The Q1 results have spurred the ...

Key TakeawaysWalmart posted a first-quarter earnings beat Thursday, with international and e-commerce sales improvements driving growth.The retailer also updated its full-year guidance, projecting a number of metrics to be near the top or above original estimate ranges.Shares rose over 6% ahead of markets opening. Walmart (WMT) shares jumped in premarket trading Thursday following the release of a fiscal 2025 first-quarter earnings report that surpassed analyst estimates, and also included raised guidance f ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Walmart Inc (NYSE: WMT) announced plans of taking its data analytics platform global on Thursday. Shares of the retail behemoth are up 5.0% at writing. Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.What is Walmart Luminate?Copy link to sectionLuminate was a result of a collaboration between Walmart and a third-party research firm called Dunnhumby in 2021.  The data analytics platform is based out of Bentonville, Arkansas. According to $WMT:Mirroring ...

Walmart shopping bag is seen in Krakow, Poland on February 9, 2024.Check out the companies making headlines in premarket trading.Under Armour — The sportswear maker's Class A shares slumped 11% and its Class C stock fell 9% after it issued lower-than-expected full-year earnings guidance. Under Armour now expects earnings in the range of 18 cents to 21 cents while analysts polled by FactSet had forecast 59 cents.Canada Goose — The coat maker jumped more than 12% after beating Wall Street estimates for sales ...

Financial presentation to accompany management commentary FY25 Q1 Guidance Metric Q2 Consolidated net sales (cc) Increase 3.5% to 4.5% Consolidated operating income (cc) Increase 3.0% to 4.5% The following guidance reflects the Company’s Adjusted EPS $0.62 to $0.65 expectations for the second quarter and fiscal year 2025 and is provided on a non-GAAP basis as the Company cannot predict certain Metric FY 2025 (updated) FY 2025 (original) elements that are included in reported GAAP Consolidated net sales (cc) ...