Consolidated net income attributable to Walmart for the first quarter ended April 30, 2018, was $2,134 million, or $0.72 per common share, compared with $3,039 million, or $1.00 per common share.
Total revenues for the quarter were $122,690 million, up 4.4 percent from $117,542 million reported in the prior-year period. Excluding currency, total revenue for the quarter was $120,700 million, an increase of 2.7 percent.
Walmart US same-store sales climbed 2.1 percent while same-store traffic increased 0.8 percent. Net sales for the quarter climbed 3.1 percent to $77,748 million, while operating income for the business slipped 3.1 percent to $3,927 million.
“We delivered a solid first quarter, and we’re encouraged by the continued momentum across the business,” said Doug McMillon, president and CEO. “We’re transforming to better serve customers. We are changing from within to be faster and more digital, while shaping our portfolio of businesses for the future. Our strong cash flow and balance sheet provide flexibility to do so. I want to thank our associates and our leadership team for the choices they’re making, their strong sense of urgency and the actions they’re taking. Our people make the difference, and I’m proud to work with them.”
In 2017, the company pledged to prioritize digital experiences and store remodels over new stores in fiscal years 2018 and 2019. This strategy paid off for Walmart, which said e-commerce sales grew 33 percent. E-commerce represents a small share of the company’s operations, but it is the fastest-growing segment in the company.
Same-store sales at Sam’s Club segment advanced 3.8 percent led by same-store traffic growth of 5.6 percent, the company said. Results were negatively impacted by tobacco sales, a drop of approximately 140 basis points.
Net sales at Walmart International in the first quarter were $30.3 billion, an increase of 11.7 percent. Excluding currency, net sales were up 4.5 percent to $28.3 billion, the company said. Eight of the company’s 11 markets posted positive same-store sales, including the four largest markets.
In its fiscal 2019 guidance, Walmart said the company expects its investment in Bengalaru, India-based Flipkart, India’s largest e-commerce company, to negatively impact earnings per share by approximately $0.25 to $0.30 if the transaction closes by the end of the second quarter.
Walmart signed a definitive agreement on May 9 to become the largest shareholder in Flipkart at a cost of $16 billion for an initial stake of approximately 77 percent. The deal is subject to regulatory approval in India.