Spencer Tirey / AP Images for Walmart Inc.
- Walmart on Thursday reported mixed first-quarter results that missed on the top line, but beat on the bottom line.
- The US’s largest retailer said it is closely "monitoring the trade discussions" between the US and China, hinting they might have to raise prices.
- Walmart shares were slightly higher ahead of Thursday’s opening bell.
- Watch Walmart trade live.
Walmart on Thursday posted mixed first-quarter results, and said it was keeping an eye on the trade talks between the US and China. Shares were up 1.3% ahead of the opening bell.
The US’s largest retailer earned an adjusted $1.13 a share as revenue edged up 1% to $123.9 billion. Wall Street analysts surveyed by Bloomberg were expecting adjusted earnings of $1.02 a share on revenue of $124.9 billion.
Meanwhile, US comparable sales ex-gas rose 3.4% year-over-year, making for the fourth straight quarter above 3% growth, as the company gained market share in categories including food and consumables.
Strength in online grocery and home and fashion categories propelled Walmart’s e-commerce business to 37% year-over-year growth.
"We’re changing to enable more innovation, speed and productivity, and we’re seeing it in our results," CEO Doug McMillon said in the earnings release. "We’re especially pleased with the combination of comparable sales growth from stores and eCommerce in the U.S."
And while business appears to be good, the company hinted that the trade battle between Beijing and Washington could cause it to raise prices.
"We’re monitoring the tariff discussions and are hopeful that an agreement can be reached," said Brett Biggs, executive vice president & CFO at Walmart. "Our goal is to always be the low-price leader, and we will actively manage pricing and margins as warranted with our customers and shareholders in mind."
Walmart said it will update its full-year guidance alongside the release of its second-quarter results.
Shares were up 7% this year through Wednesday.
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- IT’S OFFICIAL: Trump ramps up tariffs on China, escalating the high-stakes trade war
- Buy Amazon and Google, sell Apple and Exxon: Here’s an in-depth look at Goldman Sachs’ newly unveiled strategy for fighting the trade war
Source: Business Insider – jgarber@businessinsider.com (Jonathan Garber)