Walmart Inc. pressed its value advantage in the first quarter.
The retail giant’s revenues for the quarter ended April 30 increased 7.6 percent to $152.3 billion, where analysts were looking for sales of $148.9 billion.
In a landscape where consumers are still stretched by inflation and worried anew about recession, Walmart is winning dollars with scale, low prices and its grocery business, which is gaining share with higher-income households.
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While the company’s net income for the first quarter fell 18.5 percent to $1.7 billion, its adjusted earnings per share tallied $1.47, coming in 15 cents ahead of the $1.32 analysts expected, according to FactSet.
The flagship Walmart U.S. division saw comparable sales jump 7.4 percent, with transactions up 2.9 percent and the average ticket price increasing 4.4 percent — suggesting the retailer was both seeing more shoppers and that they were spending more than a year ago.
The division’s e-commerce business also showed significant growth, gaining 27 percent with strength in pickup and delivery as well as advertising, which jumped 40 percent.
Doug McMillon, president and chief executive officer, said the giant company had “a strong quarter” and noted that it successfully “leveraged expenses, expanded operating margin and grew profit ahead of sales.”
While rival Target Corp. said Wednesday it was appealing to shoppers with “affordable joy” it is Walmart that has the numbers on its side right now.
Target’s first-quarter comparable sales were flat as revenues increased by 0.6 percent to $25.3 billion.
