Walmart revenue growth
Adobe Stock / Sundry Photography

Walmart delivered a strong performance in Q1 of 2024, with e-commerce sales leading the way. The retail behemoth’s U.S. e-commerce sales grew at a rate three times faster than its total comparable sales, demonstrating the significant role that curbside and delivery orders play in the current retail environment.

Walmart revenue for Q1 2024 surged by 7.6% year over year, reaching $152.3 billion – surpassing Wall Street expectations of $148.76 billion. Growth was bolstered by e-commerce sales that expanded by 27% over the previous year. In contrast, total comparable sales, excluding fuel, saw a slower growth rate of 8.2%.

International e-commerce sales echoed this robust growth with an increase of 25%, while comparable sales rose by 12.9%.

“We had a strong quarter… We leveraged expenses, expanded operating margin, and grew profit ahead of sales,” Walmart’s CEO Doug McMillon stated. “And a big thank you to our associates, who continue to step up and deliver for customers and members whenever and however they want to be served.”

Walmart Sits Second on the Podium

Walmart’s significant e-commerce growth solidifies its position as the second best e-commerce platform in the Top 1000 database for online sales, surpassed only by Amazon. Although Walmart’s net income for Q1 saw an 18.5% decline from the previous year, falling to $1.67 billion, the steady growth of Walmart revenue from online sales indicates a promising trend for the company.

Sam’s Club, Walmart’s membership-based warehouse chain, rode the wave of e-commerce success with a 19% increase in online sales during Q1, driven primarily by curbside orders. Though comparable sales excluding fuel saw a more modest increase of 7%, membership reached an all-time high, contributing to the overall Walmart revenue growth picture.

Further contributing to Walmart’s revenue success story is the continued growth of Walmart+, with nearly 50% of new members joining through pickup and delivery services. Members of this service have been shown to shop more frequently and spend more per trip, a behavior pattern that’s been highly beneficial to Walmart’s bottom line. The company opted not to share specific figures for Walmart+ at this time, however.

 

Amidst all this growth, not all areas of Walmart’s business saw increases. General merchandise sales in the U.S. declined to what executive vice president and CFO John David Rainey referred to as “mid-single digits.” In contrast, food and consumable sales increased to “low double digits.” This consumer shift towards grocery items, which typically have lower profit margins, presents a potential hurdle for future Walmart revenue growth.

Projected Growth in Consolidated Net Sales: Walmart Revenue Forecast

Despite a few hiccups in Q1, Walmart anticipates higher sales for the rest of the year. The retail giant projects consolidated net sales to increase by 4% in Q2, with a slight 2% decrease in consolidated operating income. For the full year, Walmart expects consolidated net sales to grow by approximately 3.5%, with an operating income increase of 4 to 4.5%.

Rainey attributed these predictions to several factors, including “the persistence of inflation in food and consumables” and the reduction of SNAP benefits and lower tax refunds, partially offset by increased spending due to cost of living adjustments for social security benefits.

Walmart’s Q1 2024 financial results and projections demonstrate the retailer’s resilience and ability to adapt to a swiftly changing retail landscape. With e-commerce sales showing no signs of slowing, Walmart revenue has a promising outlook. The key will be to manage shifting consumer behaviors and external factors impacting sales. But for now, Walmart’s e-commerce sales remain the driving force behind the retail giant’s growth.

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