Forget the drive-thru. Walmart wants diners to find a value meal in its grocery aisles.As fast food gets pricier, the nation's largest grocer sees a sales opportunity.On a call with CNBC on Thursday, Walmart Chief Financial Officer John David Rainey said some of the discounter's sales growth in the recent quarter came from customers who turned to its grocery aisles for cheaper meals than they can get at quick-service restaurants."It's roughly 4.3 times more expensive to eat out than it is to eat at home," h ...

Walmart reported better than expected Q1 earnings Thursday (May 16) but that’s not the most important story. The earnings announcement and subsequent analyst call showed a price-driven retailer making adjustments to its core business model in the interest of driving long-term revenue growth in the connected economy.“I probably ignore the external environment more than you do,” CEO Doug McMillon said in answer to an analyst question. “We are focused on what we’re doing and how we earn business with customers ...

For the quarter ended April 2024, Walmart (WMT) reported revenue of $161.51 billion, up 6.1% over the same period last year. EPS came in at $0.60, compared to $0.49 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $159.5 billion, representing a surprise of +1.26%. The company delivered an EPS surprise of +15.38%, with the consensus EPS estimate being $0.52.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expe ...

Walmart (WMT) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.38%. A quarter ago, it was expected that this world's largest retailer would post earnings of $0.55 per share when it actually produced earnings of $0.60, delivering a surprise of 9.09%.Over the last four quarters, the c ...

It’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 222K is a tick above estim ...

While Walmart's earnings topped Wall Street expectations, CFO John David Rainey said that "many consumer pocketbooks are still stretched."  "We see the effect of that in our business specs as they're spending more of their paychecks on non-discretionary categories and less on general merchandise," Rainey told analysts on the first-quarter earnings call Thursday. Rainey said that particular merchandise mix is still a headwind to margins, but Walmart U.S. is in the midst of executing strategies aimed at impro ...

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,” ...