Walmart Inc. (NYSE:WMT) impressed investors yet again, leading to a surge of as much as 7% in its stock during early trading on Thursday.
For its fiscal 2025 Q1, the retail giant reported revenue of $161.51 billion, surpassing expectations of $159.58 billion, while adjusted earnings per share stood at $0.60, higher than estimates of $0.53.
Walmart’s CFO, John David Rainey, attributed the company’s continued success to customers seeking value and convenience amidst economic challenges. CEO Doug McMillon highlighted the momentum across the business, driven by increases in units sold, transaction counts, and market share gains, particularly in general merchandise.
The company’s US same-store sales increased by 3.9% year over year, with Sam’s Club experiencing a growth of 4.4%, fueled by strong demand for grocery items. Walmart’s e-commerce sales surged by 21%, boosted by store pickup, delivery, and its online marketplace.
Despite these positive results, Walmart announced plans to streamline operations, including job cuts and employee relocation to its headquarters in Bentonville, Arkansas.
Walmart’s stock split for the 12th time in 50 years during the quarter, and its shares have risen by 13.9% this year, outperforming the S&P 500’s 10% gain.
Analysts expressed optimism about Walmart’s prospects, citing its ability to cater to both low- and high-end consumers and its dominance in the grocery market. The company’s investments in technology, store makeovers, and subscription services like Walmart+ are expected to drive growth further.
Looking ahead, Walmart expects net sales to grow between 3% and 4% for the full fiscal year 2025, with operating income projected to increase between 4% and 6%. CFO Rainey emphasized the management team’s cautious approach amidst macroeconomic uncertainties, indicating a willingness to adjust guidance as the year progresses.
Overall, Walmart’s robust performance and strategic initiatives have positioned it as a top contender in the retail industry, propelling its stock to new heights and crossing the $500 billion market cap milestone.
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