Walmart said this morning that its total Q1 revenue was up 2.7 percent compared to the same period a year ago, to $138.3 billion, on same-store sales that were up six percent. Walmart said that its “U.S. eCommerce sales grew 37% with strong results across all channels, contributing approximately 360 basis points to comp sales. Sales more than doubled over the last two years.”
Net income totaled $2.73 billion, compared with $3.99 billion last year, a drop clearly connected to last year’s pandemic sales and the relative segment quiescence this year.
The company said that “Walmart International net sales were $27.3 billion, a decrease of $2.5 billion, or 8.3%, and eCommerce sales increased 49%. Net sales were negatively affected by $4.2 billion, or 14.1%, related to recent divestitures.”
- KC’s View:
- As I post this, I haven’t seen any comments from Walmart about the efficacy and growth of its Walmart+ program, which looks to compete directly with Amazon Prime. But, as CNBC notes, that’s what a lot of observers are looking for – “investors and analysts will listen to clues about whether the program is helping the retailer deepen relationships with its shoppers and sell them other kinds of services. Hanging on to market share and driving trips to the store has grown in importance, particularly as consumers get vaccinated and feel free to return to more typical pre-pandemic spending patterns.
Walmart+ is part of the retailer’s plans to broaden its business beyond retail and use its reach to make money in other ways, from advertising and financial services to health-care.”