Walmart reported a strong first quarter on Tuesday as its e-commerce business continued to drive sales and customers were helped by stimulus tests.
According to the retail giant, its sales increased by 6 percent to $ 93.2 billion in the first quarter, while operating profit increased by about 27 percent to $ 5.5 billion.
“Our optimism is higher than at the beginning of the year,” Walmart CEO Doum McMillon said in a statement. “In the US, customers clearly want to go shopping.”
Walmart is among a group of larger retailers that experienced an instant sale in the pandemic, especially for online groceries. The company’s e-commerce sales increased by 37 percent in the first quarter.
The question now is whether Walmart can continue its growth rate as retail habits begin to normalize.
Mr. McMillon said that although the second half of the year “has more uncertainty than a normal year, we expect continued pent-up demand during 2021.”
Sales in the international division declined 8.3 percent in the first quarter as Walmart declined some of its subsidiaries in locations such as Japan and Argentina. The company’s total revenue rose 2.7 percent to $ 138.3 billion.
Walmart increased its financial guidelines for the rest of the year, predicting growth in operating income with high single-digit growth, with sales in single digits.