Walmart Posts Strong Q1 Sales, Responds to Tariffs
Driven by a growing number of e-commerce sales, namely in the grocery and fashion categories, Walmart experienced its best first quarter in nine years. The mega-retailer exceeded Wall Street’s expectations of $1.02 earnings per share and came in at $1.13. Total revenue for the quarter stood at $123.9 billion – ever so slightly below the estimated $124.94, and comp store sales were in-line with expectations at 3.4 percent. The key ingredient behind it all: a 37 percent growth in e-commerce sales.
"We're changing to enable more innovation, speed and productivity, and we're seeing it in our results,” CEO Doug McMillon said in a statement. “We're especially pleased with the combination of comparable sales growth from stores and eCommerce in the U.S. Our team is demonstrating an ability to serve customers today while building new capabilities for the future, and I want to thank them for a strong start to the year."
In what should be a celebratory time for the retailer though now involves the threat of tariffs. The transition from a 10 percent increase to 25 percent on $200 billion worth of Chinese imports is expected to hit clothing, furniture, and electronics the hardest.