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Apr 30, 2021

Walmart Q1 2022 Earnings Report

Walmart's Q1 2022 performance was strong, with revenue and earnings growth driven by robust performance across all segments.

Key Takeaways

Walmart's Q1 2022 results showed strong growth, with total revenue increasing by 2.7% to $138.3 billion. Walmart U.S. comp sales grew by 6.0%, and eCommerce sales increased by 37%. The company raised its outlook for Q2 and the full year.

Walmart U.S. comp sales grew 6.0%; 16.0% on a two-year stack.

Q1 FY22 GAAP EPS was $0.97; Adjusted EPS of $1.69.

Walmart U.S. eCommerce sales increased 37%.

The company raised its outlook for Q2 and full-year.

Total Revenue
$138B
Previous year: $135B
+2.7%
EPS
$0.56
Previous year: $0.39
+43.6%
Walmart U.S. comp sales
6%
Previous year: 10%
-40.0%
Sam's Club comp sales
7.2%
Previous year: 12%
-40.0%
Gross Profit
$35B
Previous year: $32.6B
+7.5%
Cash and Equivalents
$22.8B
Previous year: $14.9B
+53.0%
Free Cash Flow
$644M
Previous year: $5.27B
-87.8%
Total Assets
$237B
Previous year: $233B
+1.6%

Walmart

Walmart

Walmart Revenue by Segment

Walmart Revenue by Geographic Location

Forward Guidance

The company updated its expectations for fiscal year 2022 and provided guidance on a non-GAAP basis. The updated guidance assumes COVID-19 conditions continue to improve as well as no significant additional government stimulus packages for the remainder of the year.

Positive Outlook

  • Consolidated net sales growth up low-to-mid single-digits, excluding divestitures.
  • Walmart U.S. comp sales up low single-digits, ex. fuel.
  • Sam’s Club comp sales up low single-digits, ex. fuel and tobacco.
  • Increase high single-digits in consolidated operating income, excluding divestitures in constant currency.
  • Increase low double-digits in EPS, excluding divestitures.

Challenges Ahead

  • Decline low single-digits in consolidated net sales in constant currency, including divestitures.
  • Decline 20-25% in Walmart International net sales in constant currency due to divestitures.
  • Maintain rate, or slightly deleverage consolidated expense leverage.
  • Decline mid-to-high single-digits in consolidated operating income.
  • Decline slightly in EPS.

Revenue & Expenses

Visualization of income flow from segment revenue to net income