Walmart Stock Surges, Exceeds $500 Billion Market Cap


Walmart (NYSE:WMT) delivered a strong performance in its fiscal 2025 Q1, propelling its stock up by as much as 7% in early trading on Thursday. The retailer reported revenue of $161.51 billion, surpassing the expected $159.58 billion, and adjusted earnings per share of $0.60, higher than the estimated $0.53.

“Customers are continuing to come to Walmart for not only value but also convenience,” said Walmart CFO John David Rainey. “Wallets are still stretched, and customers are looking for value.”

CEO Doug McMillon highlighted the business’s momentum driven by increased units sold, higher transaction counts, and market share gains, particularly in general merchandise. He emphasized that these results are not inflation-driven.

In the U.S., same-store sales rose by 3.9% year-over-year, with Sam’s Club leading the growth at 4.4%, driven by increased grocery item purchases. Sam’s Club also achieved record-high membership counts and a 13% growth in membership income. Walmart’s namesake stores experienced a 3.8% growth in same-store sales, primarily due to increased customer visits, despite flat ticket sizes.

Global e-commerce sales surged by 21%, boosted by store pickup, delivery services, and the online marketplace.

These achievements come as Walmart plans to cut hundreds of jobs and relocate employees to its Bentonville, Arkansas headquarters, according to a recent Wall Street Journal report. The retailer, the largest U.S. employer with 1.6 million workers, also completed its 12th stock split in 50 years. Walmart shares have risen 13.9% this year, outperforming the S&P 500’s  10% gain.

Ahead of the earnings report, UBS analyst Michael Lasser noted that “the stock has room to run,” citing Walmart’s resilience against macroeconomic pressures. Deutsche Bank analyst Krisztina Katai pointed out Walmart’s potential to attract both low- and high-end consumers in the coming years, while HSBC analyst Daniela Bretthauer emphasized Walmart’s dominance in the omnichannel grocery market.

Merchandise sales saw a slight decline, consistent with the last three quarters, but U.S. grocery sales increased mid-single digits, driven by fresh foods and private brand items. Stifel managing director Mark Astrachan highlighted Walmart’s pricing power, economy of scale, tech investments, and $9 billion store makeovers as key advantages.

Walmart recently launched a new private label brand, bettergoods, offering trendy, high-quality items priced between $2 and $15. The company’s advertising business also saw a 24% increase in global sales and a 26% rise in U.S. sales. Additionally, the Walmart+ subscription service experienced double-digit growth, with members engaging more frequently and spending more.

For fiscal year 2025, Walmart expects net sales to grow by 3% to 4% and operating income by 4% to 6%. “We will revisit our full-year guidance as we exit the second quarter,” Rainey stated, emphasizing a balanced approach given the macroeconomic uncertainty.

This report underscores Walmart’s robust performance and strategic positioning in the competitive retail market.

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