US retailer Walmart increased net profit to $5.1bn (£116bn) in the first quarter of its fiscal year from $1.67bn in the same period last year, with sales up six per cent to $159.9bn. Both profit and sales beat analysts’ estimates and the company improved its revenue and profit outlook for the full year. It said in a statement today.
Higher demand
The company expects easing inflation to further boost demand for core products and bring a rebound in sales of residual items such as electronics. Shares in the company, which is the world’s largest retailer, responded to the results and earnings outlook with strong gains.
Sales in the quarter to the end of April rose from $152.3 billion in the previous quarter. Roughly one percent of the increase was accounted for by an additional selling day in the period.
Expectations
The retail chain now expects to either reach the upper end of its range or slightly beat its previous full-year guidance. It had previously estimated net sales growth of three to four percent and adjusted earnings per share in the range of $2.23 to $2.37.
U.S. Internet sales increased 22 percent. Chief Financial Officer John David Rainey said in an interview with CNBC news that one of the factors driving Walmart’s grocery business is the widening gap between the cost of home cooking and buying food at fast food chains or restaurants. He added that the volume of home-delivered items surpassed the volume of items sold directly in stores for the first time.
Source: Czech Press Office
