Walmart (NYSE:WMT) reported first-quarter earnings that topped analysts’ expectations, even with its latest string of investments weighing on margins.
The Arkansas-based retailer said the results put it in a “good position” to achieve its full-year goals even though it will face tougher comparisons during the second quarter because of weather-related benefits that it reaped last year.
The chain’s investments appear to be paying off as sales continue to climb, and its e-commerce revenue rises at a rapid pace compared with the industry. That said, sales were short of expectations, hurt by currency, which dragged on its overseas business.
Earnings per share registered at $1.13, as opposed to the $1.02 expected by experts. Revenue was $123.93 billion, compared to the $125.03 billion expected. U.S. same-store sales experienced growth of 3.4%, better than an increase of 3.3% expected
"We’re continuing our transformation to become more of a digital enterprise," CEO Doug McMillon said in prepared remarks.
E-commerce sales grew 37%, boosted by its home and fashion businesses, Walmart said. That was better than online sales growth of 33% a year ago, but moderated from a 43% increase during the holiday quarter.
Walmart reported net income for the quarter ended April 30 of $3.84 billion, or $1.33 per share, compared with $2.13 billion, or 72 cents a share, a year ago.
Total revenues grew about 1% to $123.93 billion from $122.69 billion, falling short of expectations for $125.03 billion.
Walmart shares began Thursday up $2.15, or 2.2%, to $102.03
