The retailer maintained its fiscal 2027 outlook, but it fell short of Street expectations. Walmart said it expects adjusted earnings per share for the year to be between $2.75 and $2.85, below analyst estimates of $2.91, according to LSEG. The company also expects annual net sales growth of 3.5% to 4.5%.
For the current quarter, Walmart guided for adjusted earnings per share of 72 cents to 74 cents, below estimates of 75 cents. The company expects net sales to grow 4% to 5% during the quarter.
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Walmart Chief Financial Officer John David Rainey told CNBC that consumers could face greater pressure in the second quarter as the impact of higher tax refunds fades.
“I think higher tax returns muted some of the pressure related to higher fuel prices and as we’re in a period of time right now where those tax refunds are largely not coming in,” he said, adding, “that expectation is built into our guidance for the second quarter.”
Rainey also told CNBC that Walmart’s second-quarter operating income guidance was among the strongest the company has issued “in maybe a decade and a half,” despite a $175 million hit from higher fuel costs during the first quarter.
“It’ll probably be larger than that in the second quarter if fuel prices stay where they are, so we’re absorbing those prices and still maintaining our guidance, and I feel really good about that,” he said.
For the quarter ended April 30, Walmart reported adjusted earnings per share of 66 cents, in line with analyst expectations. Revenue rose 7% year-on-year to $177.75 billion, ahead of estimates of $174.98 billion.
Net income for the quarter increased to $5.33 billion, or 67 cents per share, compared to $4.49 billion, or 56 cents per share, a year earlier.
Walmart said global e-commerce sales rose 26% during the quarter, while its global advertising business grew 37%.
The company’s cautious outlook comes amid broader concerns over consumer spending as fuel prices remain elevated and consumer sentiment weakens in the US.
Shares of Walmart fell about 2% in premarket trading following the results announcement.
