Walmart’s (NYSE:WMT) first-quarter adjusted earnings surpassed expectations, leading the company to raise its full-year sales and profit forecast. The adjusted earnings per share were $0.60, exceeding the consensus estimate of $0.53, bolstered by stronger-than-expected comparable sales growth in the U.S., excluding gasoline. The positive outlook from Walmart resulted in a 7% increase in its share price intra-day today.
For Q1, Walmart’s U.S. comparable sales, excluding fuel, rose by 3.9%, with the number of transactions increasing while the average bill remained flat. Analysts had predicted a 3.15% rise in these sales.
U.S. online sales grew by 22%, surpassing the 17% growth seen during the holiday season. This growth was driven by pickup and delivery services and increased sales in categories such as men’s, women’s, and kids’ apparel through Walmart’s third-party marketplace, which now features over 420 million items, primarily discretionary products. Walmart attributed much of the online sales growth to households earning over $100,000 annually.