Walmart released its Q1 for FY2023 earnings on Tuesday. The total revenue for Walmart’s Q1 FY23 was $141.6 billion, up 2.4 billion, or 2.6 billion in constant currency. The company reported that growth was negatively affected by $5.0 billion due to divestitures and $0.4 billion from currency.
“Across our businesses, we had a strong topline quarter. We’re grateful to our associates for their hard work and creativity, said Doug McMillon, president and CEO of Walmart. “Bottomline results were unexpected and reflect the unusual environment. U.S. 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.”
Other first-quarter highlights include:
- Walmart U.S. comp sales grew 3.0 percent and 9.0 percent on a two-year stack. eCommerce growth was 1 percent, or 38 percent on a two-year stack.
- Sam’s Club comp sales increased 10.2 percent, and 17.4 percent on a two-year stack. Membership income increased 10.5 percent.
- Walmart International net sales were $23.8 billion, a decrease of $3.5 billion, or 13.0 percent, negatively affected by $5.0 billion due to divestitures, and $0.4 billion from currency fluctuations. Positive comps across all markets.
- Global advertising business grew more than 30 percent.
- Consolidated gross profit rate declined 87 basis points, primarily due to Sam’s Club and 38 basis points in Walmart U.S. on elevated supply chain costs and product mix.
- Consolidated operating expenses as a percentage of net sales increased 45 basis points, primarily due to increased wage costs in Walmart U.S.
- Consolidated operating income was $5.3 billion, a decrease of 23.0 percent, negatively affected by $0.3 billion from divestitures.
Full Walmart Earnings Release for the 1st Quarter Fiscal Year 2023 is available here.