Walmart Boosts Its Outlook as Profit and Sales Rise

By
Bill McColl
Bill McColl
Full Bio

Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

Learn about our editorial policies
Published May 18, 2023
Walmart Store

Scott Olson / Staff / Getty Images

Key Takeaways

  • Walmart's first quarter earnings and revenue beat forecasts.
  • Rising prices boosted consumer demand for groceries, while discretionary spending slowed.
  • The retailer raised its full-year profit and sales outlook.

Walmart (WMT) posted better-than-expected results and raised its guidance as rising prices drove more shoppers to the discount retailer.

Walmart reported fiscal 2024 first quarter earnings per share (EPS) of $1.47, with revenue rising 7.6% to $152.3 billion. Both were above analysts’ forecasts. At Walmart U.S., comparable store sales were 7.4% higher, and ecommerce sales soared 27%, boosted by pickup and delivery, along with advertising. Transactions increased 2.9%, and the average ticket was 4.4% higher.

The company noted a big jump in grocery sales, lifted by purchases by higher-income customers and demand for Walmart’s lower-cost private label brands. Pharmacy sales climbed, but Walmart said general merchandise sales “reflected softness in discretionary categories.”

CEO Doug McMillon pointed to the impact of inflation on consumer behavior, adding customers “are coming to us for value.”

Walmart now anticipates full-year consolidated net sales will rise about 3.5%, up from the previous 2.5% to 3%, and EPS of $6.10 to $6.20 compared to its earlier outlook of $5.90 to $6.05. 

Shares of Walmart rose 1.5% on Thursday following the news, and are up 7% so far this year. The S&P 500 is up about 9% year-to-date.

Walmart YTD % Change

YCharts
Do you have a news tip for Investopedia reporters? Please email us at
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Walmart. “Walmart Releases Q1 and FY24 Earnings.”

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.