Summary
Walmart Inc. reported total revenues of $122.69 billion for the first quarter of fiscal year 2019, an increase of 4.4% year-over-year, driven by strong comparable sales growth across its segments and a positive impact from currency exchange rate fluctuations. Despite top-line growth, consolidated net income saw a significant decrease of $0.9 billion to $2.28 billion, or $0.72 per diluted share, primarily due to a substantial unrealized loss of $1.8 billion related to a decline in the market value of its investment in JD.com. The company is actively managing its portfolio through strategic actions, including the announced combination of Asda with J Sainsbury plc, the acquisition of Flipkart, and the divestiture of Walmart Brazil, which will shape its future financial performance and geographic footprint. Operating income for the quarter was $5.15 billion, a slight decrease of 1.3% year-over-year, with operating income as a percentage of net sales declining to 4.2% from 4.5%. This was attributed to strategic price investments, increased investments in eCommerce and technology, and charges related to divestitures. The company's effective income tax rate significantly decreased to 19.3% from 32.6% in the prior year, largely due to the impact of the Tax Cuts and Jobs Act of 2017. Walmart continues to prioritize capital allocation towards store remodels, eCommerce, technology, and supply chain, reflecting its commitment to an omni-channel strategy.
Financial Highlights
50 data points| Revenue | $121.63B |
| Cost of Revenue | $91.71B |
| Gross Profit | $29.92B |
| SG&A Expenses | $25.83B |
| Operating Income | $5.15B |
| Interest Expense | $437.00M |
| Net Income | $2.13B |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.24 |
| Shares Outstanding (Basic) | 8.85B |
| Shares Outstanding (Diluted) | 8.90B |
Key Highlights
- 1Total revenues increased by 4.4% to $122.69 billion, driven by comparable sales growth and favorable currency exchange rates.
- 2Consolidated net income decreased by $0.9 billion to $2.28 billion, primarily due to an $1.8 billion unrealized loss on the investment in JD.com.
- 3Diluted earnings per share declined to $0.72 from $1.00 in the prior year.
- 4Operating income slightly decreased by 1.3% to $5.15 billion, with operating margin contracting by 30 basis points to 4.2%.
- 5The effective income tax rate significantly decreased to 19.3% due to the Tax Cuts and Jobs Act of 2017.
- 6Strategic portfolio actions include the announced combination of Asda with J Sainsbury, the acquisition of Flipkart, and the divestiture of Walmart Brazil.
- 7Capital expenditures reflect a continued focus on eCommerce, technology, and supply chain investments.