Walmart Inc

Strong Q1 performance; guidance reiterated (and viewed as conservative) - Walmart delivered ~6% constant-currency sales growth in Q1, above the top end of guidance by 120 bps and continuing to gain share. - Adj. operating income grew ~5% in constant currency, in line with guidance despite higher-than-anticipated fuel costs. - Full-year outlook reiterated: - Constant-currency sales growth: 3.5%–4.5% (management now expects toward the upper end based on Q1 + Q2 performance). - Adj. operating income growth: 6%–8%. - EPS: Q2 $0.72–$0.74; FY $2.75–$2.85.

Fuel cost hit margins—management quantified it, but sees profitability improving after Q1 - Walmart said it absorbed about $175M (≈ 250 bps) of operating income growth due to higher fuel costs (global distribution/fulfillment). - Management expects Q1 to be the lowest-profit quarter, with improving profitability thereafter, and reaffirmed that the current-year guidance was set before the major fuel increases. - If elevated fuel persists, management cautioned to expect somewhat higher retail price inflation in Q2 and second half (could affect costs/mix).

Omnichannel “speed + value” is the key demand driver (good + surprising metrics) - eCommerce +26% globally (notable for incremental margin performance and delivery acceleration). - Speed milestones: - U.S.: >36% of store-fulfilled deliveries arrived in <3 hours in Q1; under-1-hour and under-30-minute fastest-growing. - Walmart can reach ~60% of the U.S. population within 30 minutes. - Sam’s Club U.S.: delivery grew >90% and eCommerce mix reached an all-time high. - Logistics scale: - ~3.5B units delivered same/next day globally in the quarter. - Automation: about half of U.S. eCommerce FC volume automated; 60%+ of stores receiving some freight via automated DCs; 50%+ of regional DCs in retrofit stages.