Multinational retail corporation Walmart has reported a consolidated operating income growth of $0.9bn, or 17.3%, in the first quarter (Q1) of fiscal year (FY) 2024.
The retailer’s operating margin increased by 34 basis points (bps) during the quarter.
Walmart’s consolidated revenue for Q1 was $152.3bn, an increase of 7.6% from the corresponding period of the prior fiscal.
The company’s US business reported net sales of $103.9bn in the quarter, up 7.2% compared to $96.9bn in Q1 FY23.
Driven by the strong growth in China, Walmex and Flipkart, Walmart International business also recorded a net sales increase of 12.0% to $26.6bn in Q1 FY24.
The company’s global e-commerce sales rose 26% during the quarter while Walmart US and Walmart International registered e-commerce sales growth of 27% and 25%, respectively.
Comparable sales for Walmart US rose 7.4%.
Walmart subsidiary Sam’s Club recorded net sales of $20.5bn in Q1 FY24, a growth of $0.9bn or 4.5% from the same period a year ago.
Globally, the retailer’s earnings per share (EPS) calculated on generally accepted accounting principles (GAAP) was $0.62 and its adjusted EPS of $1.471.
Walmart president and CEO Doug McMillon said: “We had a strong quarter. Comp sales were strong globally with eCommerce up 26%. We leveraged expenses, expanded operating margin and grew profit ahead of sales. And a big thank you to our associates, who continue to step up and deliver for customers and members whenever and however they want to be served.”
In the second quarter of FY24, Walmart expects its consolidated net sales to grow by approximately 4.0% and consolidated operating income to drop by approximately 2.0%.
For the full year, the retailer expects its consolidated net sales and operating income to rise by approximately 3.5% and 4.0%-4.5%, respectively.
Adjusted EPS is also expected to be in the range of $6.10 to $6.20 during the FY.
Last month, Walmart closed four of its ‘underperforming’ stores in Chicago, US.