On Thursday May 15th, Walmart reported a strong quarter with total revenue +2.5% to $165.6B and U.S. comp store sales similar to last quarter, +4.5%. These topline results were in line with management’s expectations and complemented by better-than-expected bottom line results attributed to operational efficiencies and alternative revenue streams (Walmart Connect ad business up 31%).
It is notable that profitability was not meaningfully impacted by year-over-year increases in inventory levels at both Sam’s Club and Walmart US. Transactions and units drove topline; however, traffic has decelerated for the last 5 consecutive quarters and the impact of tariffs on profitability and demand has yet to be fully realized (Q1 ran from February – April).
Download Harvest Group’s full earnings recap with unique takeaways for suppliers here:
