Walmart reported quarterly earnings for its first fiscal 2023 quarter and while comp sales grew, led by increases in grocery and health and wellness, analysts report the company missed market earnings expectations because of rising fuel costs and higher inventory levels.
Walmart reports that total revenue was $141.6 billion, up 2.4 per cent, or 2.6 per cent in constant currency. Growth negatively affected by $5.0 billion due to divestitures and $0.4 billion from currency.
Walmart International, which includes Canada and other countries outside of the U.S., reported sales of $23.8 billion, a decrease of 13 per cent or $3.5 billion, when compared to the same period last year.
Health and wellness and grocery lead sales growth. In health and wellness, which saw high single digit growth, strong pharmacy sales reflected a favourable mix and branded drug inflation while in grocery, sales growth was led by strength and “reflected continued market share gains (according to Nielsen).”
Doug McMillon, president and CEO of Walmart says that “across our businesses, we had a strong topline quarter. We’re grateful to our associates for their hard work and creativity. Bottomline results were unexpected and reflect the unusual environment. U.S. inflation levels, particularly in food and fuel, created more pressure on margin mix and operating costs than we expected. We’re adjusting and will balance the needs of our customers for value with the need to deliver profit growth for our future.”
