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Walmart Q1 profit down 30 percent

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Staff Writer |
Walmart
Walmart   Consolidated net income declined to $2.13 billion

Walmart reported a 30 percent decrease in profit for the first quarter from last year, as higher revenues were more than offset by a loss on equity investment in JD.com.

For the first quarter, consolidated net income attributable to Walmart declined to $2.13 billion or $0.72 per share from $3.04 billion or $1.00 per share in the same period last year.

The latest quarter's results include an unrealized loss of $0.47 per share on the company's equity investment in JD.com due to a change in accounting principles.

It also includes a benefit of $0.05 per share due to an adjustment in the provisional amount recorded in the fourth quarter of fiscal 2018 related to the U.S tax reform.

Excluding items, adjusted earnings for the quarter were $1.14 per share.

Total revenue for the quarter, comprising net sales and Membership and other income, grew 4.4 percent to $122.69 billion from $117.54 billion in the year-ago period.

Excluding currency, total revenue increased 2.7 percent.

Net sales grew 4.4 percent to $121.63 billion, while Membership and other income climbed 4.3 percent to $1.06 billion.

Walmart U.S. comp sales increased 2.1 percent, and comp traffic increased 0.8 percent. Net sales rose 3.1 percent to $77.7 billion. Walmart U.S. eCommerce sales grew 33 percent.

Sam's Club comp sales increased 3.8 percent, led by comp traffic growth of 5.6 percent. Tobacco sales negatively impacted comp sales by about 140 basis points. Net sales at Walmart International grew 11.7 percent to $30.3 billion.

Walmart said that its recent investment in Indian e-commerce company Flipkart is expected to negatively impact fiscal year 2019 earnings per share by about $0.25 to $0.30 if the transaction closes at the end of the second quarter.

The company added that as in past years, it will update certain full year guidance with the second quarter release.


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