Walmart share price up 3% despite Q1 results revenue miss

The world's largest retailer had a mixed Q1 report, with high earnings and worse-than-expected revenue.

Walmart share price rose 3% even though the retailer's Q1 revenue fell slightly below Wall Street estimates. While Walmart’s Q1 revenue missed expectations, Walmart’s Q1 earnings beat financial experts’ predictions.

Walmart earnings:key figures

Earnings per share $1.13
Revenue $123.93 billion
US same-store sales + 3.4%

Walmart’s Q1 results have higher earnings and lower revenue

Walmart’s Q1 earnings per share were $1.13, surpassing the expected $1.02. Walmart’s Q1 revenue grew 1% to $123.93 billion, but was still less than the projected $125.03 billion. Walmart’s Q1 revenue didn't meet expectations because of lower overseas sales and currency volatility.

Same-store sales were up by 3.4%, the highest Q1 same-store sales for the retail chain since 2010. Walmart’s investment in e-commerce paid off, with online sales growing by 37%. Many customers are ordering groceries online and picking them up in stores, boosting Walmart’s Q1 profits.

Walmart hopes to continue that success and compete with Amazon’s grocery delivery service with its own upcoming next-day delivery option for customers.

Chief executive officer (CEO), Doug McMillon, spoke about the positive aspects of Walmart’s Q1 results in a statement.

‘We're especially pleased with the combination of comparable sales growth from stores and e-commerce in the US,’ said McMillon.

McMillon also noted about how the chain is continuing to invest in technology to increase Walmart’s earnings.

‘We're changing to enable more innovation, speed and productivity, and we're seeing it in our results. We’re continuing our transformation to become more of a digital enterprise,’ added McMillon.

How did Walmart’s Q1 results compare to other retailers?

Both Walmart and rival Amazon's earnings reports were positive with increased sales.

Could the US-China trade war impact Walmart’s profits in the future?

The US-China trade war will impact Walmart, which imports many of its items from China. Chief financial officer (CFO), Brett Biggs, noted in a statement that the retailer is closely watching the trade negotiations.

‘We’re monitoring the tariff discussions and are hopeful that an agreement can be reached,’ said Biggs.

Because of the current tariffs, Biggs said Walmart will raise prices on certain items.

'We are going to continue to do everything we can to keep prices low. However, increased tariffs will lead to increased prices for our customers,' said Biggs.

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