Walmart Inc (NYSE:WMT, ETR:WMT) jumped over 6% in pre-market trading after announcing better-than-expected earnings for the first quarter.
Total revenue climbed by 6% to US$161.5 billion over the three months to April, Walmart revealed on Thursday, ahead of LSEG-polled analysts’ expectations for US$159.50 billion.
Adjusted earnings per share of US$0.60 also beat expectations for the figure to come in at US$0.52.
Walmart said growth over the quarter had primarily been “driven by upper-income households” trading down for its “value-convenience proposition”.
“Around the world our goal is simple - we’re focused on saving our customers both money and time,” chief executive Doug McMillon noted in the results.
US comparable sales were up 3.8% over the quarter, while operating income climbed by 13.7% to US$7.1 billion on an adjusted basis.
This came as e-commerce sales increased 21%, Walmart’s advertising business grew by 24%, while margins and membership rates also improved.
Between 3.5-4.5% growth in comparable sales was guided for the second quarter, alongside a 3-4% jump in operating income.
For the whole year, figures should be at the high end of or above guidance for sales growth of up to 4% and operating income growth of as much as 6%, Walmart added.
Shares climbed 6.7% to US$63.82 in pre-market trading.