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].

Financial Performance - Q1 FY26 - Total revenues reached $165.6 billion, including a negative impact of $2.4 billion from currency fluctuations[12] - Total revenues (cc) increased +4.0%[12] - Adjusted operating income (cc) of $7.3 billion, up +3.0%[23] - Adjusted EPS of $0.61, up 1.7%[28] - Operating cash flow increased $1.2 billion[37] - Free cash flow increased $0.9 billion[37] Segment Performance - Walmart U.S net sales were $112.2 billion, +3.2%; eCommerce +21%[49] - Walmart International net sales (cc) were $32.1 billion, +7.8%[59] - Sam's Club U.S net sales were $22.1 billion, +2.9%, Net sales without fuel +5.5%, eCommerce +27%[92] Guidance - Q2 FY26 net sales (cc) are expected to increase 3.5% to 4.5%, including approximately 20 bps tailwind from the acquisition of VIZIO[5] - FY26 net sales are expected to increase 3.0% to 4.0%, including approximately 20 bps tailwind from the acquisition of VIZIO[7] - FY26 adjusted operating income is expected to increase 3.5% to 5.5%[7]

Target's former chief diversity officer is weighing in on the backlash the retailer has faced over its rollback of DEI policies. Caroline Wanga, who left Target in 2020 and is now CEO of Essence, told NBC's Today show on Friday that Target "didn't walk away from DEI. They trained it.""If you do this thing right, you create a way that gives goals that can be measured to incent people into the behavior," she said. "Eventually the goal goes away because the behavior is embedded and you pick the next thing." ...

Core Insights - Walmart is enhancing support for American-made products through its "Grow With US" initiative, aimed at assisting U.S. small business owners with training, mentorship, and resources for success [1][2] - The initiative includes a four-step program providing financial assistance, e-learning modules, product showcasing opportunities, and mentorship connections [2] - Over two-thirds of Walmart's total product spend in fiscal year 2024 was on items grown, made, or assembled in America, highlighting the importance of small businesses as they account for over 60% of Walmart's U.S. suppliers [5][11] Group 1 - "Grow With US" initiative is part of Walmart's expanding commitment to small business development [2] - The program aligns with similar initiatives in other countries, such as Vriddhi in India and Crece con Walmart in Mexico [4] - Walmart aims to simplify the process for small businesses to collaborate with them, acknowledging the complexities involved [7] Group 2 - Applications for Walmart's annual Open Call event, allowing U.S. businesses to pitch American-made products, will open on June 24, with the event scheduled for October [8] - The announcement follows the opening of Milo's Tea Company's new $200 million manufacturing facility in Spartanburg, South Carolina, supported by Walmart [10] - Walmart emphasizes the role of small businesses as the backbone of communities, citing success stories like that of Milo's Tea [11]

Group 1 - Walmart is remodeling over 650 stores this year to enhance the in-store shopping experience [1][4] - The remodels will include new signage, improved merchandise displays, expanded departments, and new items [1] - The pharmacy sections will feature wider aisles, a private screening room, and privacy checkout areas [2] Group 2 - Walmart is expanding online pickup and delivery services in remodeled stores to meet increasing online order demand [2] - The company aims to ensure stores reflect the communities they serve while providing the best shopping experience [3] - Walmart plans to build or convert over 150 stores and remodel 650 more in the next five years [4] Group 3 - The new and remodeled stores are part of Walmart's "Store of the Future" concept, integrating interactive technology for a seamless shopping experience [5] - Walmart will also open or remodel more than 45 fuel stations this year, with over 450 fuel and convenience stations planned across 34 states [5]

Core Insights - Target Corporation is launching its first standalone floral brand, Good Little Garden, to expand its floral offerings and cater to consumer demand for fresh flowers and plants year-round, starting at $6 [1][8] Product Offering - Good Little Garden includes over 60 options of fresh flowers and potted plants, designed for both seasonal occasions and everyday enjoyment [2][3] - The brand features bouquets of fresh-cut roses, tulips, and mixed flowers starting at $6, with potted plants like succulents and orchids starting at $15 [9] Market Growth - Since the introduction of seasonal florals in 2020, Target's floral sales have tripled, indicating a strong consumer interest in floral products [3] In-Store Events - To celebrate the launch of Good Little Garden, Target will host in-store events on April 27, including giveaways and a "build your own bouquet" experience [4] Shopping Experience - Good Little Garden products are available in Target stores nationwide and can be purchased through same-day services like Drive Up and Order Pickup, with delivery options for Target Circle 360 members [5] Company Background - Target Corporation operates nearly 2,000 stores and has a long-standing commitment to community support, donating 5% of its profits [6]

Group 1: Market Overview - The stock market is experiencing significant uncertainty due to President Trump's announcement of global tariffs and subsequent changes in trade policy, including a pause on reciprocal tariffs and a trade war escalation with China [1][2] - The S&P 500 is currently in a correction, defined as a decline of at least 10% from a recent peak, causing investor nervousness about the trade war and recession risks [2] Group 2: Target - Target's shares have declined 65% from their pandemic peak, attributed to weak consumer discretionary spending, fading pandemic momentum, and internal issues like theft [3][4] - The company reported flat comparable sales and earnings per share, with no expected growth in earnings for the current year, forecasting a range of $8.80 to $8.90 [4] - Target's price-to-earnings ratio has fallen to 10.5, suggesting that the stock could double without any change in earnings, still trading at a discount to the S&P 500 [5] - The company plans to reinvigorate its brand by focusing on owned brands and aims to add at least $15 billion in sales over the next five years through new store openings and remodels [6][7] Group 3: Micron - Micron, a leading maker of computer memory chips, is currently trading at a discount and is positioned to benefit from the AI boom, with data center revenue more than doubling and overall revenue growth at 38% [8][9] - The company has a price-to-earnings ratio of 10 based on expected earnings, indicating potential for stock price appreciation as the current malaise seems excessive [10] - If Micron meets analyst expectations of $11.08 in adjusted EPS for the next fiscal year, significant upward movement in its stock price is anticipated, making a doubling of the stock price achievable over the next two years [11]

Target CEO Brian Cornell will meet with the Rev. Al Sharpton this week in New York as the retailer faces calls for a boycott and a slowdown in foot traffic that began after it walked back key diversity, equity and inclusion programs, the civil rights leader told CNBC Wednesday.The meeting, which Target asked for, comes after some civil rights groups urged consumers not to shop at Target in response to the retailer's decision to cut back on DEI. While Sharpton has not yet called for a boycott of Target, he h ...