Walmart kept prices steady despite rising fuel costs by taking a $175 million hit to profit growth. The company expects hundreds of millions in additional energy costs this year, which could lead to price increases later if fuel costs do not fall. Walmart reported $177.8 billion in first-quarter revenue, up 7.3% year over year, and US comparable sales growth of 4.1%. Operating income rose to $7.5 billion, up 5% year over year, with fuel accounting for a quarter of a percentage point drag. Growth in e-commerce, memberships, and advertising helped offset price pressure. Adjusted earnings per share guidance for the next quarter was about $0.73, below expectations, while the full-year outlook stayed unchanged. Walmart’s stock fell about 7% after the open.
"The cost pressures led Walmart to set adjusted earnings per share guidance of about $0.73 for the coming quarter, below the expected $0.75. The full-year outlook remained unchanged but was below expectations. Walmart's stock fell about 7% after the market opened on Thursday morning. "We're not bulletproof to some of these things that are happening in the economy," Rainey said."
#retail-pricing #energy-and-fuel-costs #walmart-earnings #inflation-and-cost-of-goods-sold #e-commerce-and-memberships
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