Walmart beat analysts’ expectations for its first quarter 2021 financial results. Sales climbed 2.6 per cent to $137.16 billion; analysts were expecting $132.16 billion. International sales declined 8.3 per cent, but Canada comps sales increased 3.4 per cent with more than 115 per cent growth in e-commerce sales.
“This was a strong quarter. Every segment performed well, and we’re encouraged by traffic and grocery market share trends,” says Doug McMillon president and CEO of Walmart. “Our optimism is higher than it was at the beginning of the year. In the U.S., customers clearly want to get out and shop. We have a strong position as our store environment improves and eCommerce continues to grow. Stimulus in the U.S. had an impact, and the second half has more uncertainty than a typical year. We anticipate continued pent-up demand throughout 2021. Our results reflect the continued hard work and commitment our associates have shown throughout the pandemic — serving others and helping provide vaccines — and we’re grateful to them.”
Walmart International net sales, which includes Canada, were $27.3 billion, a decrease of $2.5 billion, or 8.3 per cent, and e-commerce sales increased 49 per cent. Net sales were negatively affected by $4.2 billion, or 14.1 per cent, related to recent divestitures, and changes in currency exchange rates positively affected net sales by approximately $0.9 billion.
Walmart benefited from consumer shopping trends amidst the pandemic with customers stocking up on pantry items.
Walmart also raised its outlook for earnings and sales for the full year. The company sees net sales growing by low to mid-single digits, excluding divestitures, after forecasting previously as low-single digit increase. The company maintained its outlook for capital expenditures of around $14 billion this year, which will go toward initiatives like building out supply chain capacity and automation to keep pace with rising demand.
For more information check out the Q1, 2022 results transcript: