Walmart’s Q1 Earnings Preview: E-Commerce Drives Growth

Walmart NYSE:WMT

Walmart Inc. (NYSE:WMT) is scheduled to report first-quarter fiscal 2025 earnings on May 16, with a focus on its e-commerce business, a significant revenue driver.

The company’s e-commerce sales accounted for 18% of its overall net sales in the fourth quarter of fiscal 2024, up from 15% in the previous quarter. This growth reflects a trend towards online shopping and Walmart’s efforts to adapt to changing market dynamics.

Walmart’s omnichannel business has seen strong growth, with store-fulfilled delivery sales increasing by 50% in the fourth quarter of fiscal 2024. The company’s proximity to customers has allowed it to use its stores to fulfill e-commerce orders. Walmart has also made strategic investments in its e-commerce operations, including acquisitions, partnerships, and improvements to delivery and payment systems.

The company has been innovating in its supply chain, adding capacity, and developing new businesses such as Walmart GoLocal, Walmart Connect, and Walmart Fulfillment Services. Additionally, Walmart recently announced its acquisition of VIZIO HOLDING to strengthen its Walmart Connect business in the U.S. Other notable developments include the majority stake in Flipkart and the acquisition of a stake in India’s digital transaction platform, PhonePe.

Walmart’s focus on the online grocery market is evident through initiatives like Express On-Demand Early Morning Delivery, collaborations with companies like Salesforce, and the expansion of its Walmart+ membership program. As of the fourth quarter of fiscal 2024, Walmart had nearly 4,600 pickup locations and more than 4,300 same-day delivery stores.

For the first quarter of fiscal 2025, Walmart expects consolidated net sales growth of 4-5% at constant currency, including a nearly 100 bps gain from the leap year. Consolidated operating income growth is expected to be 3-4.5% at constant currency. Pre-split adjusted EPS is anticipated to be in the range of $1.48-$1.56, while post-split EPS is expected to range from 49 to 52 cents.

Analysts expect first-quarter revenues to reach $159.3 billion, a 4.6% increase from the year-ago period. The consensus estimate for earnings per share is 52 cents, reflecting a 6.1% increase from the previous year.

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About the author: Stephanie Bedard-Chateauneuf has over six years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on tech stocks, consumer stocks, health stocks, and personal finance. This stock lover likes to invest for the long-term. Stephanie has an MBA in finance.