Walmart’s surging growth during the first fiscal quarter of 2017 has exceeded many expectations. As the world’s largest retailer, it reported sales growth of $6.24 billion, resulting in total revenue of $152.301 million, which is equivalent to 7.6 percent higher year-over-year.
What’s more, Walmart announced that its consolidated net billing forecasts – that is, its net sales – will increase by 3.5 percent for the fiscal year. Meanwhile, its earnings forecast for the year is between $6.10 and $6.20, beating past earnings expectations of $5.95 – $6.05 per share in its fiscal year.
“We’ve had a strong quarter. Composite sales were strong around the world, with e-commerce up more than 26%. We reduced expenses, expanded the margin, and profits grew above sales,” said Walmart CEO and Chairman Doug McMillon. After the announcement, Walmart shares rose about 2 percent shortly before the opening of Wall Street, as reported by the financial portal Investing.com.
So, what led to Walmart’s great success? The company focused on abandoning traditional supermarkets and reducing purchases of discretionary merchandise from rivals such as Target (TGT).
Here is a quick rundown of Walmart’s growth during the first quarter:
+7.6%, rising to $152.3bn, beating estimates of $148.7bn
US Total Same Store Sales
+7.4%, beating estimates of +5.1%
Gross Profit Margin
23.7%, beating estimates of 23.64%
-7%, vs. estimates of -7.1%
All in all, Walmart’s growth during this period has been impressive, and the company predicts sustained success during the rest of the fiscal year.