Walmart CFO John David Rainey: We have the ability to navigate higher fuel prices

Summary

Walmart CFO John David Rainey discusses the company's first-quarter results, highlighting revenue and EPS growth despite operating income pressure from higher fuel prices. He notes widening consumer spending divergence between high and low-income customers and reaffirms full-year guidance, expressing confidence in Walmart's ability to manage fuel costs.

• Walmart reported 7% revenue growth and 8% EPS growth in Q1.
• Operating income faced 250 basis points of pressure from higher fuel prices.
• Walmart reaffirmed Q2 operating income growth guidance of 7-10% and full-year guidance.
• High-income consumers continue spending confidently, while low-income consumers show budget strain.
• Average fuel gallons per fill-up fell below ten for the first time since 2022.
• SNAP benefit rolloffs impacted results early in the quarter but slowed later.
• General merchandise mix improved for the first time in 18 quarters, aided by tax refunds and business changes.
• Fashion, beauty, and home decor categories saw significant share gains.