Walmart pops on Q1 earnings beat and record quarter for its e-commerce division
The retail giant warned that shoppers could see tariffs drive price hikes as soon as this week.
Walmart shares jumped nearly 3% in premarket trading after the retail giant posted solid Q1 earnings and its first-ever profitable quarter for e-commerce both in the US and globally.
Earnings per share came in at $0.61, topping the $0.58 analysts expected, with revenues of $165.61 billion virtually in line with estimates.
Comparable sales rose 4.5% for Walmart US and 6.7% at Sam’s Club (excluding fuel), topping expectations. Online sales were also a standout: Walmart’s US e-commerce sales grew 21%, marking the 12th straight quarter of double-digit gains, and global e-comm jumped 22%.
Walmart continues to attract higher-income shoppers, especially online, as it expands its digital assortment and revamps stores. Still, the company’s CFO warned that shoppers will start seeing tariff-driven price hikes as soon as this month, despite the 90-day US-China trade truce taking effect.
The retailer also reaffirmed its full-year outlook, expecting 3% to 4% sales growth and earnings of $2.50 to $2.60 per share. Before the premarket move, shares were still up about 62% over the past year.
Correction: An earlier version of this story incorrectly stated that Walmart reported Q2 results. The company released Q1 results. It’s been corrected.
