The Walmart Inc. retail machine continued to churn away in the first quarter.
Net income increased 18.8 percent to $5.3 billion, while adjusted earnings per share hit the 66 cents mark that analysts had figured on, according to Yahoo Finance. Adjusted operating income grew by 5.1 percent.
Revenues for the quarter ended April 30 rose 7.3 percent to $177.8 billion, a 5.9 percent increase in constant currencies.
The top line was buoyed by quick growth in e-commerce, which was up 26 percent, and the advertising business, up 37 percent.
“Our results reflect our continued focus on delivering across the enterprise — better shopping experiences, a broader assortment, and faster delivery,” said John Furner, president and chief executive officer. “Our teams are adopting innovative technologies, driving productivity through automation, and growing higher-margin commerce solutions. It’s a disciplined approach that’s helping us grow the business and strengthen returns.”
Furner took the baton from veteran CEO Doug McMillon in February.
As the largest brick and mortar player in the world — and one that’s successfully chasing Amazon in advertising and e-commerce — Walmart is a bellwether for the industry.
And the read from the first quarter is that the consumer is holding up — so far — against general inflation and higher fuel prices after the U.S. and Israeli war with Iran caused an oil shock.
But Walmart’s results don’t necessarily translate to other retailers as it is working with the kind of scale no one else enjoys and is also positioned well to pick up additional, higher-end shoppers when times get hard.
Walmart reiterated its forecast for the full year, calling for revenues to gain by 3.5 percent to 4.5 percent while operating income increases by 6 percent to 8 percent.
