Walmart's quarterly financial report exceeded expectations, with significant growth in its e-commerce business and increased profits from new businesses such as advertising and membership programs. The company demonstrates strong resilience during periods of economic uncertainty, attracting more high-income consumers and is expected to maintain a leading position in the retail industry.

Brilliant performance

Walmart's quarterly financial report released on Thursday exceeded market expectations, mainly benefiting from significant growth in e-commerce business, profit growth in new businesses such as advertising, and attracting more high-income consumers.Walmart now expects the full year performance to reach the high end or slightly exceed the forecast range. Walmart expects a 3% to 4% increase in net sales for the entire year, with earnings per share ranging from $2.23 to $2.37. The company's stock price hit a historic high on Thursday, closing up about 7%.

Changes in consumer behavior

John David Rainey, Chief Financial Officer of Walmart, stated that one factor driving the growth of Walmart's food business is the widening price gap between home cooking and purchasing food at fast food restaurants or restaurants. In addition, customers also highly appreciate the convenience provided by Walmart. Walmart's delivery business surpassed in store pickup for the first time in sales. E-commerce sales in the US market increased by 22% year-on-year, mainly due to in store pickup and delivery of online orders, as well as the company's expanding third-party market.

financial data

In the three months ending April 30th, Walmart's net profit jumped to $5.1 billion, or 63 cents per share, compared to $1.67 billion or 21 cents per share in the same period last year. Revenue increased by 6% year-on-year to $161.51 billion. The same store sales (excluding fuel) in the US market increased by 3.8%, while Sam's Club's same store sales increased by 4.4% year-on-year. The trading volume in the US market increased by 3.8%, but the average consumption per transaction remained the same as the same period last year.

Contribution of new business

Walmart has increased profits through advertising and subscription membership programs, and these new businesses have led to revenue growth exceeding sales growth. Global advertising business grew by 24% this quarter, with the US market growing by 26%.

The number of third-party market sellers in the US market has increased by 36% and now has over 420 different products. The number of third-party sellers in the Mexican market has increased by over 50%, and the total number of products has increased by nearly 80%.

Market reactions and future prospects

Walmart's stock closed at $64 on Thursday, with a market value of $515.83 billion. As of Thursday's close, the company's stock has risen by about 22% so far this year, surpassing the S&P 500 index's increase of about 11%.

Despite inflation putting pressure on consumer purchasing power, Walmart is still attracting more consumers, especially new customers from high-income groups, which keeps the company ahead in the fiercely competitive retail market.