Walmart this morning released solid Q1 fiscal results, saying that total revenues went up 2.5 percent to $165.6 billion compared to the same period a year ago, total operating revenue went up $0.3 billion or 4.3 percent, global e-commerce sale went up 22 percent, and global advertising revenue went up a whopping 50 percent. Walmart US sales went up 4.5 percent, while US e-commerce sales went up 21 percent.
CNBC notes that Walmart achieved a milestone in the just-completed quarter: “It posted its first profitable quarterfor its e-commerce business both in the U.S. and globally. The business has benefitted from the growth of higher-margin moneymakers, including online advertising and Walmart’s third-party marketplace.”
CFO John David Rainey tells CNBC that tariffs are “too high” for the retailer to absorb: ““We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb. It’s more than any supplier can absorb. And so I’m concerned that consumer is going to start seeing higher prices. You’ll begin to see that, likely towards the tail end of this month, and then certainly much more in June.”
CNBC also writes that “Unlike some of its peers, Walmart has advantages that have helped it better weather an uncertain economy and woo a more selective U.S. consumer. As the nation’s largest grocer, it sells food and necessities that drive steadier store and website traffic. And as a well-known value player, it can use lower prices to attract even middle- and upper-income customers who want to pay less. Already, Walmart has attracted wealthier shoppers with faster deliveries, store remodels and a wider assortment of brands.”
KC’s View:
CFO Rainey also said that the current environment is “dynamic and fluid.”
Which may be the understatement of the year. Or art least the quarter. Or maybe just the week, because these days, weeks seem like months.
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