First-quarter highlights
- The company’s net sales and operating results were significantly affected by a continuation of the global health crisis. Increased demand for products across multiple categories led to strong top-line and gross margin results.
- Total revenue was $137.7 billion, an increase of $7.4 billion, or 5.6%. Excluding currency, total revenue would have increased 7.5% to reach $140.2 billion.
- Walmart U.S. comp sales increased 9.3%, led by strength in general merchandise and food.
- Walmart U.S. eCommerce sales grew 97% with strong results across all channels.
- Sam’s Club comp sales increased 13.3%. eCommerce sales grew 39%. Reduced tobacco sales negatively affected comp sales by approximately 390 basis points. Growth in membership income was the highest quarterly increase in more than five years. New member count increased more than 60%.
- Walmart International net sales were $27.2 billion, a decrease of 6.8%. Changes in currency rates negatively affected net sales by approximately $2.4 billion. Excluding currency, net sales would have been $29.6 billion, an increase of 1.6%. Net sales included the effects of the government-mandated closure of the company’s Flipkart business in India for a portion of the quarter, as well as similar actions in markets in Africa and Central America.
- Consolidated gross profit rate increased 63 basis points primarily as a result of a shift in the mix of sales to higher-margin general merchandise categories, fewer markdowns and better margins on fuel, partially offset by the carryover of investments in price from last year. Spending associated with stimulus payments in the U.S. positively affected sales of general merchandise.
- Consolidated operating expenses as a percentage of net sales increased 42 basis points, primarily as a result of incremental expenses related to COVID-19, a business restructuring in the U.S. and a discrete tax item. In total, these costs negatively affected expense leverage by about 130 basis points. Underlying productivity in stores and eCommerce remained strong.
- Consolidated operating income was $6.1 billion, an increase of 8.5%. Adjusted operating income in constant currency increased 18.6% led by strength across all operating segments, including significantly lower losses in Walmart U.S. eCommerce.
- Adjusted EPS excludes the effects, net of tax, of an unrealized gain of $0.89 on equity investments, a business restructuring charge in the U.S. of $0.10 and $0.08 for a discrete tax item.
