Walmart has announced its Q1 2024 earnings, leading to a record high market cap of $500 billion.
Yahoo! Finance has verified that Walmart’s revenue for Q1 2024 reached $161.51 billion, surpassing the anticipated earnings of $159.58 billion. This resulted in a 7% increase in the stock value during early trading on Thursday.
Furthermore, same-store sales rose by 3.8%, global e-commerce sales saw a 21% increase, and the stock split for the 12th time in 50 years, boosting shares by 13.9% in the quarter.
All these positive developments pushed Walmart’s market cap to $500 billion, an all-time high for the company.
“Customers are still coming to Walmart for value and convenience,” said CFO John David Rainey. “We observe that wallets are still tight, and customers are seeking value.”
“The company’s growth is fueled by increased unit sales, transaction counts, and market share, especially in general merchandise,” CEO Doug McMillon explained in a call with investors. “These results are not due to inflation.”
Despite these optimistic outcomes, Walmart is reducing its workforce significantly.
Recently, the company announced plans to lay off hundreds of corporate staff members. Additionally, remote employees are expected to return to the workplace on a modified schedule.
Walmart is relocating staff from smaller locations in Dallas, Atlanta, and Toronto to corporate headquarters in Bentonville, Arkansas, an office in Hoboken, New Jersey, or a central hub in Southern California. Corporate employees will now follow a hybrid schedule, allowing them to work remotely part-time while spending the majority of their workweek in the office.
Last month, Walmart also decided to shut down all 51 Walmart Health locations in addition to the Walmart Health Virtual Care program. The company blames financial challenges, such as an unsustainable business model and difficulties with reimbursement and operating costs, for these closures.
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