- U.S. Walmart comparable store sales growth smashed analyst expectations.
- U.S. Walmart comparable store sales indicate the sales generated by Walmart's U.S. stores that have been open for at least one year.
- E-commerce sales for U.S. Walmart stores rose 37% year over year even as shoppers began returning to stores.
|Walmart Earnings Results|
|Metric||Beat/Miss/Match||Reported Value||Analysts' Prediction|
|U.S. Walmart Comparable Store Sales Growth||Beat||6.0%||0.8%|
Source: Predictions based on analysts' consensus from Visible Alpha
Walmart (WMT) Financial Results: Analysis
Walmart Inc. (WMT) reported Q1 FY 2022 earnings that dramatically exceeded analysts' expectations. Adjusted earnings per share (EPS) beat analyst forecasts, rising 43.2% year over year (YOY). Revenue came in above analyst estimates, rising 2.7% YOY instead of the 2.3% decline that was expected. Comparable store sales growth for U.S. Walmart-branded stores also exceeded analyst estimates by a wide margin. The company's shares were up more than 3% in pre-market trading. Over the past year, Walmart's shares have provided a total return of 10.5%, well above the S&P 500's total return of 40.9%.
U.S. Walmart Comparable Store Sales
U.S. Walmart comparable store sales rose 6.0% YOY, boosted by share gains in grocery revenue. The metric encompasses revenue generated by Walmart's U.S. stores that have been open during the previous 12 months. Comparable store sales growth gauges a company's ability to generate additional revenue from established stores. If the bulk of a company's sales are being generated by established stores as opposed to new ones, this is a good sign that the company's products have not yet saturated the local market.
Comparable store sales also includes Walmart's e-commerce sales, which were up 37% from the year-ago quarter for its U.S.-based Walmart stores. The company said that e-commerce posted strong results across all channels and that sales have more than doubled over the past two years. Walmart's e-commerce sales have been boosted by shoppers choosing to shelter at home during the COVID-19 pandemic. But even as more consumers begin to return to stores amid the subsiding health risks, Walmart is managing to continue posting strong e-commerce sales growth.
WMT FY 2022 Outlook
Walmart provided some general forward guidance for the rest of FY 2022. The company expects consolidated net sales to decline from the previous year. However, those sales are expected to grow after excluding certain divestitures. U.S. Walmart comparable store sales are expected to be flat for the year. The company expects EPS to rise.
Walmart's next earnings report (for Q2 FY 2022) is estimated to be released on Aug. 17, 2021.
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Walmart Inc. "Q1 FY22 Earnings Release," Page 1. Accessed May 18, 2021.
TradingView. "Price Chart: WMT and S&P 500." Accessed May 17, 2021.
Walmart Inc. "Form 10-K for the fiscal year ended January 31, 2021," Page 33. Accessed May 17, 2021.
Walmart Inc. "Q1 FY22 Earnings Release," Page 3. Accessed May 18, 2021.
Yahoo! Finance. "Earnings Calendar: WMT." Accessed May 17, 2021.