- Walmart reported first-quarter revenues of $168 billion, up 4% from last year.
- US sales were boosted by shoppers rushing to get ahead of tariff-related price hikes.
- Walmart's CFO said customers should expect price rises soon.
Walmart's strong first quarter underscores that the retailer views tough times as an opportunity.
It reported first-quarter revenues of $168 billion, up 4% from last year on a constant currency basis, and a 3% rise in profit to $7.3 billion.
"We delivered a solid first quarter in a dynamic operating environment. We're serving customers and members in more ways, which is fueling our growth," CEO Doug McMillon said in the earnings release.
US sales were lifted by shoppers rushing to get ahead of potential price hikes related to new tariffs on China and other countries announced during the quarter.
Year-over-year foot traffic to Walmart stores was up an estimated 4.5% in April, after being down in February and March, likely due to shopper concerns about prices and supply constraints, according to Placer.ai.
The stock rose 2.6% in premarket trading.
In an interview with CNBC after the earnings were released, Walmart's CFO John David Rainey said shoppers should expect increased prices in the near future.
"We're wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb," he said.
"It's more than any supplier can absorb. And so I'm concerned that the consumer is going to start seeing higher prices. You'll begin to see that, likely towards the tail end of this month, and then certainly much more in June."
Walmart also reported major growth in revenue from its membership programs, with global membership fee income up nearly 15%. The company doesn't disclose publicly how many Plus members it has, but it is estimated at more than 15 million, according to Barclays.
CEO Doug McMillon gave a preview of the results in early April at Walmart's investor meeting, shortly after President Donald Trump ratcheted up tariffs on imports from China.
McMillon said that two-thirds of what Walmart sells in the US is sourced domestically, and said the retailer's broad product assortment and experienced merchandising teams were well-suited to handle the uncertainty.
"We'll just manage it in a way that mix becomes a strength," he said.
In addition, CFO John David Rainey said at the time that fluid situations like this one have historically seen Walmart win customers over from rival retailers.
"If you look back two years ago when we saw inflation, we invited a lot of new customers to Walmart," he said. "We have a similar opportunity today."
