Wal-Mart Stores has booked an increase in first-quarter profits as it reported better-than-expected sales at its US outlets.
The world’s largest retailer today (17 March) said net income rose 10.1% to US$3.7bn for the quarter ended 30 April. Net income from continuing operations was up 9.2% to US$3.74bn, as operating income rose 8.3% to $6.3bn.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Revenue grew 8.6% to $112.3bn. Sales in its US operations increased 5.9% to $66.3bn with comparable-store sales rising 2.6%, better that its guidance, which forecast flat sales or an increase of 2% at best. Comparable-store sales in the US have grown for three quarters, following nine consecutive quarterly declines. Wal-Mart US also grew operating income faster than sales this quarter.
“In a highly competitive retail environment, Wal-Mart US is increasing price separation across categories and driving increased traffic to both the grocery and general merchandise areas of our stores. That strategy was reflected in the 2.6% comp,” said president and CEO Mike Duke. “Customers count on us for one-stop shopping and our merchandising priorities are aligned with that in mind.”
Its international division recorded a 15% increase in sales to reach $32.1bn in sales.
“Walmart International delivered strong sales growth in the first quarter and operating income grew faster than sales, increasing more than 20 percent,” Duke added.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“We are very focused on improving profitability and returns, and with greater transitions to everyday low price in more markets, we have stronger customer traffic, which contributed to net sales growth.”
Click here to view the full earnings release.
