“Walmart Q1 Beats Estimates with Strong US Sales and E-Commerce Profits. Shares Rise 2.5% Premarket As Guidance Holds Steady.”, – WRITE: www.fxempire.com
NET INCOME DROPED TO $ 4.49 Billion, or $ 0.56 Per Share, from $ 5.10 Billion, or $ 0.63 Per Share, A Year Ago. Still, Walmart’s Ability to Maintain Profitability in A Cost-Sensitive Environment Underscores ITS PRICING POWER AND OPERATIONAL DISCIPLINE.
IS E-Commerce Finally Paying Off for Walmart? Walmart Logged ITS FIRST PROFITABLE QUARTER IN E-Commerce Across Both US and International Markets. Online sales jumped 21% in the US and 22% Globally, Extending a 12-Quarter Streak of Double-Digit Growth. Higher-Margin Segments Such As Online Advertising and Its Third-Party Marketplace Were Key Contributors.
Walmart Connect, The US Advertising Arm, Posted A 31% Year-Over-Year Sales Gain, Excluding the Vizio Acquisition. Membership-Based Services Like Walmart+ and Improved Logistics Have Further Boosted Engagement from Middle- and High-Income Shoppers.
What role Will Tariffs Play in Q2 and Beyond? CFO John David Rainey Warned that Recent Tariff Cuts on Chinese Imports, Down to 30% for 90 Days, Remain Too Steep for The Company or Its Suppliers to Fully Absorb. He Expects Consumers to Begin Seeing Price Increases Later This MONTH, WITH A MORE NOTICEABLE IMPACT IN June. Due to Tariff Uncertainty, Walmart withheld Eps and Operation Income Guidance for the Second Quarter, Thought IT Projects 3.5% to 4.5% Growth in Net Sales.
WHAT SHOULD Traders Expect Next? Walmart’s Strong Quarter Sets The Tone Ahead of Key Updates from Target, Home Depot, and Lowe’s Next Week. The Stock, UP 7% Year to Date, Continues to Outperform The S&P 500, Reflection Investor Confidentnce in Walmart’s Defensive Mix of Essentials and Expanding Digital Revenue Streams. Tariff Developments Remain A Risk Factor, But Walmart’s Scale and Pricing Leverage Offer A Cushion in a Tight Consumer Environment.