BENTONVILLE, Ark.—Walmart Inc. (NYSE: WMT) has announced first quarter financial results for the three months ending on April 30, 2024, showcasing strong growth in revenue and operating income. The results shared by the omnichannel, global retailer are for Q1 of its 2025 fiscal year, which runs for 12 months ending January 31, 2025. Specific highlights for the first quarter include consolidated revenue of $161.5 billion, up 6.0 percent, or 5.8 percent constant currency versus the same period last year; reported operating income up $0.6 billion (9.6 percent) and adjusted operating income up 13.7 percent, attributed to higher gross margins and growth in membership income; and growth in global e-commerce sales by 21 percent, led by store-fulfilled pickup/delivery and marketplace.

“Our team delivered a great quarter,” said Doug McMillon, president and chief executive officer of Walmart. “Around the world our goal is simple—we’re focused on saving our customers both money and time. It’s inspiring to see how our associates are simultaneously executing the fundamentals and innovating to make shopping with us more enjoyable and convenient. We’re people-led and tech-powered, and that combination is propelling our business.”

In addition, gross profit rate increased by 42 basis points (bps) to 24.1 percent for the quarter, up from 23.7 percent for the same period the prior year. The company reported cash and cash equivalents of $9.4 billion, total debt of $50.1 billion, and operating cash flow of $4.2 billion, marking a decrease of $0.4 billion.

Net sales for Walmart U.S. for the first quarter of its 2025 fiscal year were reported at $108.7 billion, as compared with $103.9 billion for the first quarter last year, marking an increase of $4.8 billion or 4.6 percent. The company credited this growth in part to an increase in e-commerce sales by 22 percent, led by pickup/delivery and marketplace, as well as strength in transaction counts and unit volumes, with like-for-like inflation slightly positive. They also suggested that the company’s value-convenience proposition is resonating, with share gains primarily driven by upper-income households. Sam’s Club U.S. net sales were reported to increase to $21.4 billion, as compared with $20.5 billion for the same period last year, marking 4.6 percent growth.

Looking ahead, the company expects second-quarter consolidated net sales to increase 3.5 percent to 4.5 percent, constant currency, and updated its fiscal year 2025 net sales projections to be high-end or slightly above original guidance that had proffered a potential 3.0 percent to 4.0 percent increase.

During the quarterly earnings call yesterday, McMillon alluded to the company’s announcement earlier this month that it would be closing its 51 U.S. health clinics across five states and end virtual health care services, and reaffirmed the company’s focus on its 3,000 vision centers and the nearly 4,600 pharmacies located inside its stores.

“During the quarter, we made the necessary but difficult decision to close our U.S. health care clinics,” McMillon said on the earnings call. “There were a number of aspects that were going well, and we really want to be part of the solution to improving health care in this country.

“But the reality is, given reimbursement rates and costs to serve, we could no longer see a path to achieving an acceptable level of profitability, and we’re committed to being disciplined with our investments,” he continued. “We’ll continue to build our pharmacy and optical businesses, and we’ll find ways for our pharmacists to help, as they’ve done with immunizations and vaccinations.”