On Thursday May 16th, Walmart reported a strong start to its fiscal year, with total revenue +5.8% and US comp store sales +3.8% in Q1, both better than the company and Wall Street expected. Comp store sales have slowed for 5 consecutive quarters, and the biggest concern for the business is around deflation, sales trends, and outlook for general merchandise categories.
Conversely, digital is firing on all cylinders with Q1 eCommerce sales growth returning to 20%+, global ad sales +24%, and over 400 million SKUs now offered online aided by Marketplace. The company delivered its goal to grow operating income faster than sales this quarter, and we remain cautiously optimistic that the company’s momentum will continue through the year.
Download Harvest Group’s full Walmart Q1 2024 Earnings recaps with takeaways for suppliers here:
