Examining Walmart's Q1 Profit Growth and Digital Profitability

Neha Ghai
June 22, 2024
Walmart's Q1 sales

At a Glance

  • Walmart's net sales reached $108.7 million.
  • 21% increase in membership models.
  • 22% increase in e-commerce sales.
  • Future growth anticipated at 3.5% - 4.5%.

The retailer's profits increased by 4.6% on overall net sales of $108.7 million, driven by higher transaction counts and unit volumes. The positive momentum was fueled by the value convenience proposition, particularly resonating with upper-income households. Additionally, there was a 21% rise in membership income, aligning with Grocery Doppioā€™s digital grocery performance scorecard, indicating that 41% of grocers consider introducing membership models a significant focus area to enhance digital profitability.

Key Highlights

E-commerce PerformanceĀ 

Walmart US experienced a 22% increase in e-commerce sales, driven by store-fulfilled pickup and delivery, marking a 5% rise from the previous quarter. Additionally, there was growth in Walmart's marketplace. This corresponds with our research findings, which indicate that 86% of grocers prioritize enhancing picking efficiency as a significant focus area for improving digital profitability.

Walmart AdvertisingĀ 

The increase in Walmart US Connect ad sales, particularly attributed to Marketplace sellers, reflects a broader trend identified in our report regarding digital profitability. Specifically, our report highlights that 69% of grocers are prioritizing the monetization of retail media networks to enhance their digital profitability. This strategic focus aligns with Walmart's growth in advertising revenue, indicating that our insights into digital profitability resonate with real-world market dynamics and trends.


Inventory stock levels have decreased by 4.2%, despite sustained strong sales and higher in-stock levels. Globally, inventory is down by 2.7%, with Walmart U.S. experiencing a decrease of 4.2%.Ā 

Future OutlookĀ 

Walmart has adjusted its guidance for the second quarter and full year, anticipating a 3.5% to 4.5% increase in net sales for the second quarter. The full-year net sales projection is now expected to be at the higher end or slightly above the previous outlook of 3% to 4% growth.Ā