Investing.com -- Walmart Inc (NYSE:WMT) has posted a bigger-than-anticipated jump in sales in the first quarter, as strong performance at its e-commerce business and an uptick in grocery demand helped offset the impact of inflationary pressures hitting other major retailers.
Total revenue during the three months to April rose by 7.6% to $152.3 billion, topping estimates of $147.8B.
Sales at Walmart's key U.S. operations rose to $103.9B due in part to a 27% surge in its e-commerce operations, particularly in advertising as well as pickup and delivery services. The group also made gains in grocery sales, including in higher-income households.
A move to "leverage expenses" also contributed to a 17.3% expansion in total operating income to $6.2B.
Shares in Walmart added more than 1.6% in premarket U.S. trading on Thursday.
Walmart faces a challenge to keep prices low even as inflation threatens to increase input costs, Investing.com's Damian Nowiszewski said. According to DataWeave statistics, which analyzed prices from early 2022 to February 2023, Walmart's average prices for a selected basket of nearly 600 products rose by just 3%. This is under both the average inflation rate and Walmart's closest competitors, Nowiszewski noted.
Earlier this week, rivals Target (NYSE:TGT) and Home Depot (NYSE:HD) posted sales that missed Wall Street estimates as cost-of-living worries persuaded many shoppers to rein in non-essential spending.