"Walmart's Strong Q1 Performance Driven by Robust US Consumer Spending, Stock Hits All-Time High"

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Walmart, the largest retail distributor in the United States, reported a significant jump in first-quarter sales despite concerns about weakened consumer sentiment. Overall sales for this year are also expected to be higher than previously forecasted. Walmart's stock price reached an all-time high, driven by strong performance.

On the 16th (local time), Walmart announced that sales at its U.S. stores in the first quarter increased by 3.8% compared to the same period last year, surpassing Wall Street's estimate of 3.7%. E-commerce sales surged 22% during the same period. Walmart explained that a substantial portion of sales was driven by high-income households spending over $100,000 annually at grocery stores.

Regarding the strong sales performance, Walmart emphasized that it was not due to inflation. Doug McMillon, Walmart's Chief Executive Officer (CEO), stated, "Shoppers want more than just low prices," adding, "This means that regardless of external conditions, if we provide good products, prices, and services, we can continue to drive growth."

Walmart has raised its full-year sales and earnings expectations. The company revised its earnings per share (EPS) guidance slightly higher than the previous range of $2.23 to $2.37 per share. It also expects sales to grow by 3-4% this year. Operating income growth is projected to exceed 4-6%.

Walmart has maintained steady growth even after the COVID-19 pandemic, which contrasts with other competing retailers. Home improvement retailer Home Depot reported a 2.3% decline in first-quarter sales, citing customers postponing interior plans due to high interest rates.

Walmart continues to invest consistently. Recently, it agreed to acquire TV manufacturer Vizio for $2.3 billion to create a new revenue stream from advertising sales. Last month, it introduced a premium food line to attract customers. Earlier this year, Walmart announced plans to build major stores for the first time in about a decade. However, it has faced challenges such as reducing hundreds of jobs due to rising operating costs and relocating remote workers back to offices.

Walmart's stock price closed up 7% that day, marking the largest increase since March 2020. Since the beginning of this year, Walmart's stock has risen about 22%, nearly double the S&P 500 index's 11% gain.