Walmart is reporting its global ad business soared 30% in the last quarter as its revenue growth topped analyst estimates.
The retailer announced first quarter results ending April 28, including revenue growth of 7.6% to about $152 billion, and operating income growth of 17.3% to $6.24 billion.
The company also forecast net sales to rise about 3.5%, higher than its prior outlook.
According to the company, advertising is one of the factors helping the company deliver operating margin expansion.
Globally, ecomm sales moved 26% higher, with strength in store-fulfilled and advertising.
In this morning’s earnings call, Walmart CEO Doug McMillon called the company’s Q1 performance “strong” and that the omnichannel model continues to resonate with consumers.
Convenience, in addition to price are key business drivers, McMillon says. Customers are seeking value in a global inflation environment, particularly in the U.S., Mexico and Canada.
Canadian net sales moved 6.7% higher, to $5.5 billion. Canada saw continued momentum in food and consumables with softness in general merchandise. The Canadian market saw continued strength in private brands which grew over 7% year over year. Ecomm net sales declined 2%.
The U.S., by contrast, saw growth in eCommerce of 27%, with strength in pickup and delivery and advertising. Stateside, Walmart Connect advertising sales grew nearly 40% as it saw strong momentum in new advertisers, particularly in Marketplace sellers.
In the United States, Walmart reports it gained market share in grocery, including with higher-income households and younger buyers.
Sam’s Club, Walmart’s membership-only warehouse chain, saw strong comp sales, led by food and consumables, and positive unit growth overall. Sam’s Club growth in eCommerce was 19% led by curbside pickup. It achieved “record high” member counts, and it is attracting more millennials and Gen Z.
Sam’s ad business, Member Access Platform grew double digits, with the number of active advertisers up 50% from last year. Walmart says advertisers are responding to its recently launched in-Club sales attribution feature, which provides advertisers clearer insights on returns of digital ad spend both online and in Clubs.
