Walmart characterized the first quarter of fiscal 2027 for its U.S. division as one of “strong sales, with broad-based share gains, reflecting accelerated customer transactions led by e-commerce growth.”
Reporting results May 21 for the quarter ended April 30, Walmart said its U.S. comparable store sales increased by 4.1 percent, excluding fuel. U.S. net sales reached $117.2 billion, an increase of 5 percent, and e-commerce sales grew 26 percent, led by store-fulfilled delivery, which surged approximately 45 percent. Marketplace sales jumped nearly 50 percent — the division’s best performance in 10 quarters. Expedited deliveries – those that happened less than three hours after the order was placed – represented about 36 percent of store-fulfilled orders.
“Our results reflect our continued focus on delivering across the enterprise — better shopping experiences, a broader assortment and faster delivery,” said John Furner, president and CEO of Bentonville, Arkansas-based Walmart. “Our teams are adopting technologies, driving productivity through automation and growing higher-margin commerce solutions. It’s a disciplined approach that’s helping us grow the business and strengthen returns.”
Comparable sales growth of 4.1 percent was driven by a 3.0 percent increase in customer transactions and a 1.1 percent rise in average ticket, both excluding fuel. Market share gains were broad-based across categories and income tiers, led by upper-income households, with strength in both grocery and general merchandise, the retailer said.
Walmart’s total company revenues – including Walmart U.S., Sam’s Club Walmart International – rose 7.3 percent to $177.8 billion. Global e-commerce sales also grew by 26 percent, led by store-fulfilled pickup and delivery and marketplace.
Advertising and Membership
Walmart U.S. advertising grew 36 percent overall, including a 44 percent increase in Walmart Connect, the company’s retail media platform. Membership fee revenue grew at a double-digit pace, with net additions reaching a record first quarter high. Adjusted operating income for the segment rose 5.7 percent, reflecting improved e-commerce economics, Walmart+ membership growth and other income benefits, the company said.
Fuel Costs Weigh on Operating Income
Operating income increased 5.0 percent to $7.5 billion but was negatively affected by 250 basis points from higher fuel costs in distribution and fulfillment, the retailer said. Gross profit rate improved 6 basis points to 24.3 percent. Adjusted earnings per share grew 8.2 percent to $0.66, compared to $0.61 in the prior year period.
CFO John David Rainey noted that higher tax refunds helped offset fuel price pressure during the quarter but cautioned that consumers may feel more strain in the second quarter as refund season winds down.
Outlook
For the second quarter of fiscal 2027, Walmart expects net sales to grow 4 to 5 percent in constant currency; operating income to rise 7 to 10 percent; and adjusted EPS to range from $0.72 to $0.74.
Full year fiscal 2027 guidance remains unchanged, with net sales growth of 3.5 to 4.5 percent; adjusted operating income growth of 6 to 8 percent; and adjusted EPS of $2.75 to $2.85.
Walmart operates more than 10,900 stores in 19 countries and serves about 280 million customers and members weekly.