When calculated according to generally accepted accounting principles (GAAP), the retailer sustained a 24% year-over-year decline in profit.Įven worse, when capex is included, Walmart’s free cash flow for the quarter stood at negative $7.3 billion, and FCF per share was negative $2.65. However, adjusted EPS of $1.30 fell well short of the $1.48 per share expected by analysts. With revenue of $141.57 billion, the company beat the consensus estimate of $138.94 billion. Walmart reported its first quarter results for FY23 on May 17th.
Furthermore, the demographics of the average Walmart shopper may mean inflation will hit their pocketbooks a bit harder than some of its rival’s patrons. While the firm’s management has a number of initiatives designed to drive growth, the retailer’s sheer size is a formidable obstacle to meaningful revenue expansion. No, the company is not immune to higher prices or recessions. Yes, Walmart’s business model possesses strengths that should serve to blunt inflation. The back-to-back poor reports sent shock waves across the retail sector. Target’s CEO cited, “unexpectedly high costs, driven by a number of factors, resulting in profitability that came in well below our expectations” as the cause for the dismal results. In short-order, Target ( TGT) issued Q1 earnings. So much for Walmart being a panacea for inflation. inflation levels, particularly in food and fuel, created more pressure on margin mix and operating costs than expected.” "Bottom line results were unexpected and reflect the unusual environment.
CEO Doug McMillon’s update summed up the causes for the company's lackluster quarterly report. On May 17th, Walmart’s ( NYSE: WMT) Q1 2023 earnings hit the street.
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