Walmart (WMT) Q1 2024

Walmart will report first-quarter results before the bell on Thursday home depot And Goal said shoppers were moving away from high-priced items and discretionary purchases.

Based on Refinitiv consensus estimates, here’s what Wall Street expects for the quarter:

• Earnings per share: $1.32
• Revenue: $148.76 billion

As the nation’s largest grocer, Walmart may be in a stronger position than other retailers. Nearly 60% of the major U.S. retailer’s annual sales come from groceries, which could lead to steadier sales if shoppers focus on buying essentials while holding back on spending amid persistent inflation.

Walmart has attracted higher-income grocery shoppers over the past three quarters by emphasizing value as groceries remain expensive. Its private labels, which cost less than national brands, account for more than 20% of sales at Walmart and over 30% of sales at Walmart-owned Sam’s Club, said John David Rainey, the company’s chief financial officer, at an investor day last month.

But even in the supermarket, customers may have less money to spend. Pandemic emergency funding from the Supplemental Nutrition Assistance Program, formerly known as Food Stamps, ended in most states in March. That means lower-income Americans have to dig deeper to cover groceries while paying rent and other expenses.

Walmart issued a weaker-than-expected full-year outlook in February, saying it expects Walmart US same-store sales to rise between 2% and 2.5%, excluding fuel. It said adjusted earnings per share for the fiscal year would be between $5.90 and $6.05 (excluding fuel).

At an investor day in April, Walmart showcased an automated warehouse and stressed its drive to generate higher profits — even as sales continue to slack. CEO Doug McMillon said he expects profits to grow faster than sales over the next five years as the retailer embraces automation and expands into higher-margin businesses like advertising and fulfillment services.

Walmart shares closed at $149.53 on Wednesday, a market value of $403.33 billion. The stock is up nearly 6% year-to-date. Stocks have lagged behind S&P 500That’s about 8% gain and that XRTDuring the same period, the company posted growth of almost 2%.