Furniture sales surged on Walmart Marketplace in Q1

BENTONVILLE, Ark. – Furniture seems to have found its footing at Walmart U.S., especially online, where the retailer generates more margin-rich business from higher income households than stores do.

Furniture sales climbed 20% on Walmart Marketplace during the first quarter, ended April 30. The non-furniture home segment also jumped 20% on Marketplace, as did sporting goods and kids’ apparel.

At Walmart U.S. stores, general merchandise share expanded thanks to higher unit sales and traffic. Price deflation in general merchandise drove down comp in the low single-digit range.

Walmart’s “Store of the Future” remodel is also boosting performance, executives said during this morning’s Q3 investor call.

“We’re seeing higher engagement across income cohorts, with upper income households continuing to account for the majority of the share gains,” said John David Rainey, EVO/CFO.

At Sam’s Club U.S., furniture sales remained soft, the company reported.

Optimism and caution

Walmart U.S. delivered better than expected growth with comp sales up 3.8%, including strong ecommerce growth of 22%. Traffic and sales were strong across both stores and digital channels.

Still, the company cautioned that shoppers remain under pressure.

“Many consumer pocketbooks are still stretched, and we see the effect of that in our business mix as they’re spending more of their paychecks on non-discretionary categories and less on general merchandise,” said Rainey.

Total Walmart Inc. company revenues reached $161.5 billion, with strength across all operating segments. Revenues were up 6.6% year-over-year and up 5.8% on a constant currency basis. Global e-commerce net sales grew by 21%

The company’s net income more than tripled compared to the year-ago quarter, coming in at $5.10 billion, or 63 cents per share.

Walmart Inc. now expects full-year results to hit the high end of its previous guidance, or perhaps even top it. The forecast calls for net sales growth of 3% to 4% and adjusted EPS between $2.23 and $2.37.

See also:

  • Walmart’s fiscal year report shows shrinking general merchandise segment
  • Walmart will now sell AI-powered logistics tech to all businesses

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