Walmart produces a first quarter punch

Walmart reported stronger first-quarter sales Thursday, driven by continued growth in ecommerce, advertising and membership revenue, while reaffirming its outlook for the fiscal year despite higher fuel-related operating costs.

The retail giant said revenue rose 7.3% to $177.8 billion in the quarter ended April 30, compared with $165.6 billion a year earlier. Net sales increased 7.1% to $175.7 billion, while diluted earnings per share climbed to 67 cents from 56 cents a year ago.

In the United States, comparable sales excluding fuel increased 4.1%, supported by a 3% increase in customer transactions. Walmart U.S. ecommerce sales also rose 26% during the quarter.

Operating income increased 5% to $7.5 billion. The company said higher fuel costs in its distribution and fulfillment network reduced operating income growth by approximately 250 basis points.

The strong earnings come despite a streak of declining traffic, according to data from Placer.ai. Walmart’s traffic has declined since February, Placer.ai reports, when visits rose 5% year over year and same-store visits increased 4.9%. In March, visits grew just 2% year over year and same-store visits increased 1.9%. In April, visits rose 1.5% and same-store visits increased 1.4%.

President and CEO John Furner said the company continued to benefit from investments in technology, automation and faster delivery services while expanding higher-margin businesses such as advertising and marketplace operations.

At Sam’s Club, net sales rose 6.1% to $23.4 billion. Comparable sales excluding fuel increased 3.9%, and ecommerce sales grew 23%. Membership and other income rose 11%, reflecting growth in member counts and higher renewal rates.

For the second quarter, Walmart expects net sales growth of 4% to 5% on a constant-currency basis and operating income growth of 7% to 10%. Adjusted earnings are projected to range from 72 cents to 74 cents per share.

The retailer left its fiscal 2027 guidance unchanged, continuing to forecast annual net sales growth of 3.5% to 4.5%, adjusted operating income growth of 6% to 8% and adjusted earnings per share of $2.75 to $2.85.

In April the retailer announced it plans to open about 20 new stores in 2026 and early 2027, more than double the number of new stores opened in 2025. The retailer also said it would remodel about 650 supercenters and Neighborhood Markets, about the same number of total remodels as last year.

Walmart is also rolling out a rapid remodel initiative for its Neighborhood Market stores that will include the installation of digital signage and other changes.

The company said during the first quarter it is shutting two ecommerce fulfillment centers in Illinois and Massachusetts as it transitions to more highly automated facilities in its supply chain network.