Walmart E-commerce Sales Rose 74% in First Quarter
Wednesday, May 20th, 2020
The company’s net sales and operating results were significantly affected by the outbreak of COVID-19. Unprecedented demand for products across multiple categories led to strong top-line results. Certain incremental costs negatively affected operating income, including costs associated with enhanced wages and benefits as well as safety and sanitation.
Total revenue was $134.6 billion, an increase of $10.7 billion, or 8.6%. Excluding currency, total revenue would have increased 9.7% to reach $135.9 billion.
Walmart U.S. comp sales increased 10.0%, led by strength in food, consumables, health & wellness and some general merchandise categories.
Walmart U.S. eCommerce sales grew 74% with strong results for grocery pickup and delivery services, walmart.com and marketplace.
Due to continued strength of the Walmart.com brand, the company will discontinue Jet.com. The acquisition of Jet.com nearly four years ago was critical to accelerating our omni strategy.
Sam’s Club comp sales increased 12.0%, led by in-club transactions. eCommerce sales grew 40%. Reduced tobacco sales negatively affected comp sales by approximately 410 basis points.
Net sales at Walmart International were $29.8 billion, an increase of 3.4%. Changes in currency rates negatively affected net sales by approximately $1.3 billion. As a reminder, with the exception of Canada, all other international markets report on a one month lag.
Consolidated gross profit rate declined 66 basis points primarily as a result of the carryover of investments in price from last year, a shift in the sales mix to lower-margin categories and channels as well as some markdowns in general merchandise.
Consolidated operating expenses leveraged 62 basis points despite incremental costs related to COVID-19.
Consolidated operating income was $5.2 billion, an increase of 5.6% and included lower losses in Walmart U.S. eCommerce compared to Q1 FY20. Excluding currency, operating income would have increased 6.6%.
Adjusted EPS excludes only the effects of an unrealized gain of $0.22, net of tax, on the company’s equity investment in JD.com.