By 
Walmart Inc shares plunge 7% after slashing its full-year EPS estimates, reporting U.S. comp-store sales growth of 3% in Q1 of fiscal 2023.
Source: Walmart
WMT down -6.76%, AMZN up +1.75% pre-market trading
Comp sales growth for the US stores came in above the analyst estimates of nearly 1.8% and ahead of the company’s own prior estimate in February of 1% to 2% for the quarter.
The growth is attributable to continued share gains in grocery, with grocery sales growth in the high single digits on a two-year stack. Pet categories were solid performers due to inflation trends.
Ecommerce growth for Walmart was 1% year over year and 38% on a two-year stack. But the company’s global advertising business posted a 30% year-over-year growth.
Total Walmart Inc revenue in the first quarter was $141.6 billion, and the company’s consolidated gross profit margin dropped 87 basis points largely due to higher supply-chain costs and inflation-related pressures.
Walmart also slashed its estimates for full-year EPS. The company is also projecting full-year com sales growth of nearly 3.5%, slightly higher than estimated in February of almost 3%.
Comments