Financial Data and Key Metrics Changes - For the first quarter, the company grew sales by 4% and profit by 3% in constant currency [7] - Consolidated revenue increased by 4% in constant currency, despite currency headwinds reducing reported sales results by $2.4 billion [25] - Adjusted operating income grew by 3% in constant currency, with adjusted EPS of 61 cents, higher than the guided range [33] Business Line Data and Key Metrics Changes - Walmart US comp sales grew by 4.5%, aided by strong e-commerce sales growth of 21% [26] - Sam's Club US comp sales, excluding fuel, increased nearly 7%, with e-commerce growing by 27% [29] - International business sales grew by 7.8% in constant currency, driven by strength in China and Flipkart [28] Market Data and Key Metrics Changes - E-commerce globally grew by 22%, with each segment delivering growth of at least 20% [8] - In international markets, items delivered same or next day increased by 35%, with about 45% delivered in under three hours [28] - The number of deliveries in less than three hours for Walmart US grew by 91% year-on-year [9] Company Strategy and Development Direction - The company is focused on driving e-commerce growth and reshaping its business model for higher profitability [9] - The strategy includes managing inventory effectively and navigating tariff impacts while maintaining low prices [11][21] - The company aims to grow profit faster than sales, with a commitment to diversifying income streams through advertising and membership [19][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating cost pressures from tariffs and maintaining profitability [21][39] - The company anticipates that economic uncertainty may provide opportunities to gain market share [37] - Management emphasized the importance of managing inventory well in a dynamic environment [46] Other Important Information - The company achieved e-commerce profitability for the first time on a global basis [30] - Membership fee income grew nearly 15% across the enterprise, with strong growth in Sam's Club and Walmart Plus memberships [31][32] - The company repurchased $4.6 billion in stock during the first quarter, equivalent to the total for the previous year [35] Q&A Session Summary Question: E-commerce profitability and future margins - Management highlighted that e-commerce profitability was achieved globally, driven by network densification and reduced delivery costs [51][52] Question: Balancing investments and profit growth - Management stated that they are striking the right balance between investment and profit growth, with a focus on diversifying income streams [70][71] Question: Consumer behavior across income levels - Management noted growth across all income cohorts, with a focus on value and speed of delivery [75][76] Question: Capital allocation and automation investment - Management confirmed that CapEx will remain in the range of 3% to 3.5% of sales, with a focus on long-term returns [85][86] Question: Strength in advertising and integration of Vizio - Management reported strong growth in Walmart Connect and highlighted the ongoing integration of Vizio [91][92] Question: Impact of tariffs on inventory planning - Management emphasized the importance of managing replenishable items and adjusting inventory based on tariff assumptions [106][107]

Financial Data and Key Metrics Changes - For the first quarter, the company reported a sales growth of 4% and profit growth of 3% in constant currency [6] - International sales increased by 7.8%, with e-commerce growing globally by 22% [6][25] - Consolidated revenue increased by 4% in constant currency, despite currency headwinds reducing reported sales by $2.4 billion [25] - Adjusted operating income grew by 3% in constant currency, with adjusted EPS of 61¢ exceeding the guided range [33] Business Line Data and Key Metrics Changes - Walmart US comp sales grew by 4.5%, driven by strong e-commerce sales growth of 21% [26] - Health and wellness sales increased in the high teens, while general merchandise sales saw a slight decline [26] - Sam's Club US comp sales, excluding fuel, increased nearly 7%, with e-commerce growing by 27% [28] - The advertising business across markets increased by 50%, with Walmart Connect in the US growing by 31% [31] Market Data and Key Metrics Changes - The international business saw a sales growth of 7.8% in constant currency, particularly strong in China and Flipkart [27] - Items delivered same or next day in international markets increased by 35%, with about 45% delivered in under three hours [27] - The company reported that over 50% of Sam's Club members now transact digitally [28] Company Strategy and Development Direction - The company is focused on driving e-commerce growth and enhancing delivery speed, aiming to reach 95% of the US population with delivery options of three hours or less [8] - The strategy includes diversifying profit streams through e-commerce, advertising, and membership, with a commitment to grow profit faster than sales [19][36] - The company plans to continue investing in automation, store growth, and technology, while managing costs associated with tariffs [34][85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating cost pressures from tariffs and maintaining profitability despite challenges [21][36] - The company anticipates that the current economic environment will not alter its long-term financial framework [36][95] - Management highlighted the importance of managing inventory effectively in a dynamic environment, particularly in light of tariff impacts [104] Other Important Information - The company repurchased $4.6 billion in stock during the first quarter, equivalent to the total share repurchases for the previous year [35] - The company expects capital expenditures to be in the range of 3% to 3.5% of sales for the fiscal year [35] Q&A Session Summary Question: E-commerce profitability and future margins - Management noted that e-commerce achieved profitability for the first time, driven by network densification and reduced delivery costs [50][51] Question: Balancing investments and profit growth - Management emphasized the importance of growing profit faster than sales while remaining open to increasing investments as needed [66] Question: Consumer behavior across income levels - Management reported growth across all income cohorts, with a focus on value and convenience for customers [73][78] Question: Capital allocation and share buybacks - Management confirmed a commitment to share buybacks in response to price dislocations, while balancing investments and dividends [85] Question: Impact of tariffs on marketplace sellers - Management indicated that inventory is flowing well and that tools have been developed to assist sellers in managing their inventory effectively [107]

Core Viewpoint - Walmart, the largest private employer in the U.S., has indicated potential price increases due to tariff uncertainties, despite meeting Wall Street expectations for its first quarter results [1][6]. Group 1: Financial Performance - Walmart reported revenue of $165.6 billion, aligning with expectations, and adjusted earnings per share slightly exceeded Wall Street forecasts [6]. - The company anticipates net sales growth of 3.5% to 4.5% in the second quarter and expects full-year net sales to grow by 3% to 4% [10]. Group 2: E-commerce and Store Performance - For the first time, Walmart's e-commerce business achieved profitability for a full quarter, with e-commerce sales growing by 22% [7]. - Sales at U.S. stores open for at least a year increased by 4.5%, driven by strong growth in health and grocery segments [7]. Group 3: Tariff Impact and Strategic Response - Walmart's CEO expressed that the company cannot absorb all the pressure from tariffs due to narrow retail margins, indicating a need for potential price hikes [1]. - The company plans to make strategic investments to enhance its value proposition despite tariff uncertainties [2]. - A recent meeting between Walmart's CEO and President Trump was described as productive, focusing on trade negotiations and tariff impacts [5]. Group 4: Product Category Performance - The company experienced weakness in the general merchandise category, particularly in electronics, home, and sporting goods, but this was offset by strong sales in toys, automotive, and kids' apparel [8].