Discount retailer Walmart (WMT) has reported first-quarter financial results that topped Wall Street estimates due largely to growth in its e-commerce sales.
The Arkansas-based company announced earnings per share of $0.60 U.S. versus $0.52 U.S. that had been forecast among analysts.
Revenue in the quarter came in at $161.51 billion U.S. compared to $159.50 billion U.S. that was estimated on Wall Street. Sales were up 6% from a year earlier.
Walmart attributed the strong results to a rise in its e-commerce sales. However, the company said that it also benefitted from a rise in advertising and that it has attracted more high-income shoppers to its stores.
Same-store sales in the U.S. rose 3.8%. At the company’s Sam’s Club outlets, same-store sales increased 4.4% year over year.
E-commerce sales grew 22% year over year in Q1, driven by store pick-up and delivery of online orders, as well as the company’s growing third-party marketplace.
Walmart said that it also grew its high-margin businesses such as advertising as it pushes to increase its earnings faster than its sales.
The retailer said its global advertising business increased 24% during the quarter.
In terms of guidance, Walmart said it now expects to achieve the high-end of its previous outlook that called for sales growth of 3% to 4% and earnings of $2.23 U.S. to $2.37 U.S. per share for all of this year.
As the largest retailer and private employer in America, Walmart is viewed as a bellwether for the U.S. economy.
The stock of Walmart has risen 20% over the last 12 months and currently trades at $59.83 U.S. per share.
