“We had a strong quarter,” said Doug McMillon, Wamart’s president and CEO, in a release. “Comp sales were strong globally with e-commerce up 26%. We leveraged expenses, expanded operating margin and grew profit ahead of sales.”
Walmart Connect, the retailer’s in-house retail media network first launched in 2021, grew approximately 40% in the first quarter compared to the same period last year. Walmart also said it gained market share in the grocery category, including higher-income shoppers.
The retailer also updated its outlook for the entire fiscal year, and it now projects to see its overall sales increase by 3.5% compared to last year. John David Rainey, Walmart’s chief financial officer, told CNBC thatcontinued economic hardships are impacting consumers’ purchasing habits.
Rainey said shoppers were making fewer discretionary purchases, looking for promotions on higher-priced items and choosing lower-priced items.
As Retail Leader Pro Chief Analyst Elizabeth Lafontaine recently noted, behaviors picked up by consumers during this inflationary period are likely to persist, even as inflation cools from its peak last summer.