Walmart earnings are dented by higher costs
Summary
- U.S. customers spent 3% more on average per trip to stores in the first quarter
Walmart Inc. sales grew during the most recent quarter, while higher product, supply-chain and employee costs ate into profits.
U.S. comparable sales, those from stores or digital channels operating for at least 12 months, rose 3% in the quarter ended April 29, led by strength in food categories, the company said Tuesday when it reported earnings. The number of U.S. transactions stayed flat during the quarter, while the amount spent each time rose 3%, the company said.
As sales grew at the country’s largest retailer by revenue, “bottom-line results were unexpected and reflect the unusual environment," said Walmart Chief Executive Doug McMillon in a release. Inflation created more pressure than the company expected on margins, particularly in food and fuel, he said. “We’re adjusting," he said.
Net income fell nearly 25% from the same period last year to $2.05 billion. Adjusted earnings per share were $1.30, missing the consensus forecast from analysts of about $1.48, according to FactSet.
Overall revenue was up 2.4% to $141.57 billion.
Walmart said it expects U.S. comparable sales for the full year to grow about 3.5%, up from a previous estimate of 3%. It expects operating income to decrease about 1%, excluding currency fluctuations, down from a previous estimate of around a 3% increase.
Walmart’s stock fell more than 7% in premarket trading.
This story has been published from a wire agency feed without modifications to the text
