Profits and comparable sales increase in Canada
Walmart Canada reported comparable sales growth slowed with $5.4 billion USD in net sales equating to growth of 1.1%.
The retailer reported first-quarter earnings of $4.45 billion USD in the quarter ended April 30, down from $5.10 billion USD the year prior.
However, the company reported strong festive-event performance in stores and e-commerce in Canada and strong e-commerce sales growth of 23% led by store-fulfilled delivery. Growth in food and consumables continued while general merchandise softened.
Walmart said strategic investments in associates, stores and supply chain are in the plans for its Canadian business.
Walmart’s advertising business grows
Walmart reported 50% year-over-year growth in its global advertising business.
Led by online retailer Flipkart, Walmart’s international advertising interests grew 20% year over year.
The company’s retail-media advertising platform Walmart Connect was up 31% year over year and its core advertising business continued to its strong performance with help from first- and third-party suppliers, according to a news release.
Walmart said engagement with the Walmart Connect platform for marketplace sellers in Canada was “really high” with SKU counts growing 80% in Canada and Mexico compared to the previous quarter.
Company dealing with cost pressures
Walmart CEO Doug McMillon warned of tariff cost pressures in Thursday’s earnings call.
“Even at the reduced levels, the higher tariffs will result in higher prices,” McMillon said, adding that tariffs are already pressuring items such as avocado and coffee.
The cost “reset,” he said, will play out as the year goes on and affect imported goods. Still, McMillon said Walmart is “well positioned” to deal with the volatility relative to other retailers.
