Walmart performs better than expected, but consumer is under pressure

New York - American retail giant Walmart published a higher-than-expected turnover on Thursday for its first quarter, which runs from February to April. Its executives warned that American consumers were being constrained by the return of inflation.

Turnover reached 177.8 billion dollars, an increase of 7 percent compared to the same period last year, according to a statement. This result surpassed the company's forecast, which anticipated a range between 3.5 percent and 4.5 percent.

Walmart has long had an online presence. It made this a strategic priority in 2016 with the acquisition of start-up Jet.com, one of the most dynamic players in the sector.

The Bentonville, Arkansas-based group has capitalised on its network of stores and warehouses to ensure fast and cost-effective deliveries for online orders, helping it to close the gap with Amazon.

In the first quarter, online sales grew by 26 percent year-over-year. They now account for 23 percent of the company's total turnover.

This digital focus has also enabled Walmart to develop a significant online advertising business. The group also created Walmart Marketplace, a platform open to third-party companies, similar to Amazon's model.

Just under a year ago, it also launched an artificial intelligence (AI) assistant named Sparky to help customers with their shopping.

Pressure on consumers

In contrast to the group's growth, its margins have been affected by the rise in fuel prices.

The geopolitical context and accelerating inflation are also affecting customers.

“In the US, consumers are under pressure and they are turning to Walmart for good deals,” said CEO John Furner, during his first quarter at the helm of the global retail leader.

Chief financial officer, John David Rainey, indicated that the average amount of petrol purchased at the group's service stations had fallen to its lowest level since 2022. “This is an indicator of stress” for customers, who are moderating their consumption, Rainey explained.

If the Strait of Hormuz remains closed and oil prices remain high, “this could lead to price increases” at Walmart, warned Rainey, particularly in the food category.

Net profit reached 5.49 billion dollars, an increase of 18 percent. Earnings per share, excluding exceptional items, stood at 66 cents. This key figure for investors was in line with analysts' projections.

Despite the first quarter's growth of 7 percent, Walmart confirmed its annual forecast and its growth range of 3.5 percent to 4.5 percent. This indicates an expected slowdown in the coming quarters.

This outlook disappointed investors. In pre-market trading, the stock dropped by nearly 4 percent.

“Some investors found these forecasts a little disappointing,” commented Neil Saunders, an analyst at GlobalData.

The analyst, however, sees the glass as half full. He praised Walmart's ability to maintain its targets “despite a serious deterioration in consumers' financial situation due to petrol and inflation”.

Achieving the annual growth expected by the group would constitute “a solid expansion” and allow it to gain market share, the analyst argued.

Geographically, the retail giant was driven by its international business, with sales 18 percent higher than in the same period of 2025.

This momentum offsets the slower growth of the Walmart brand in the US (+4.5 percent) and its discount store subsidiary Sam's Club (+6.1 percent).

Nevertheless, revenue growth in the US was the highest in a year and a half, Furner stressed.

This article was translated to English using an AI tool.

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