Walmart International posts $23.8 bn net sales in Q1 FY23

In the first quarter, the comparative sales of Walmart US grew 3 per cent and 9 per cent on a two year stack. E-commerce growth was 1 per cent, or 38 per cent on a two year stack. Consolidated operating income was $5.3 billion in the same quarter, a decrease of 23 per cent, negatively affected by $0.3 billion from divestitures, the company said in a press release.

“Across our businesses, we had a strong topline quarter. We’re grateful to our associates for their hard work and creativity. Bottomline results were unexpected and reflect the unusual environment. US inflation levels, particularly in food and fuel, created more pressure on margin mix and operating costs than we expected. We’re adjusting and will balance the needs of our customers for value with the need to deliver profit growth for our future.” Doug McMillon, president and CEO, Walmart.

The company expects its consolidated net sales to grow by 5 per cent in the second quarter of FY23 and about 4 per cent in constant currency in full fiscal 2023. The company’s guidance assumes a generally stable consumer in the US, higher supply chain costs, continued pressure from inflation, and mix of products and formats globally.

Fibre2Fashion News Desk (RR)