In a May 17th release, Walmart Inc. (WMT) posted financial results for the 1st quarter of fiscal 2023. Along with other retailers, both brick-and-mortar and online, all are subject to the pressures from increased costs for goods, transport and labor in a competitive environment still recovering from COVID. As a multinational company, Walmart faces risks associated with currency fluctuation, geopolitical events and adverse policies by regulators in host-Nations.

For the 1st Quarter of FY 2023 ending April 30th 2022, net income was $2,054 million on total revenue of $141,169 million.  Comparable figures for the 1st quarter of fiscal 2022 ending April 30th 2021, were net income of $2,730 million on total revenue of $138,310 million. Diluted EPS fell from $0.92 for the 1st quarter of fiscal 2022 to $0.74 for the most recent quarter.

Gross margin fell 3.2 percent to 24.5 percent and operating margin fell 24.0 percent to 3.8 percent from Q1 2022 to the recently completed quarter.

In the investor call Doug McMillon, CEO and president referring to the miss in bottom-line performance noted “ results were unexpected and reflect the unusual environment as inflation in the U.S. is at a nearly four-decade high.” Walmart management noted the additional costs of wages, energy and transport.

For FY 2022 segment results comprised:-

Walmart US: Net sales $96,900 million. Operating income $4,500 million. Comparable same-store sales up 3.0 percent.

International: Net sales $23,800 million. Operating income $800 million.

Sam’s Club: Net sales $19,600 million. Operating income $500 million. Comparable same-store sales up 10.2 percent.

Walmart operates 10,593 stores worldwide of which 5,342 are in the U.S. including 600 Sam’s Club warehouses.

Forward guidance for FY 2023 included:- 5 percent increase in revenue, 5 percent increase in same-store sales and EPS static or “slightly higher”.

On April 30th 2022, WMT posted assets of $246,142 million with long-term debt and lease obligations of $49,809. The Company had an intraday market capitalization of $406,370 million at noon on May 17th. WMT trades with a forward P/E of 21.8 and has ranged over a 52-week period from $132.31 to $160.77 with a 50-day moving average of $150.03.  Twelve-month trailing operating margin was 4.5 percent and profit margin 2.4 percent.  Return on assets over the past twelve months was 6.5 percent and the return on equity 15.5 percent. At close of trading on May 16th pre-release, WMT was priced at $148.46. Post-release on May17th WMT opened at $134.81 closing down 11.4 percent to $131.39, representing the worst single-day fall in 35 years while the S&P was up 2.0 percent.