Walmart posts 7.3% sales growth but gives cautious outlook

Walmart reported strong first-quarter sales growth but issued a cautious outlook for the coming months, citing persistent economic pressures on consumers. The retail giant's results, released Thursday, highlighted a consumer base that is still spending but increasingly focused on essentials and value.

The company's sales rose 7.3% to $177.75 billion for the quarter ended April 30, exceeding analyst expectations. Comparable sales at U.S. stores, which include online transactions, increased 4.1%. Walmart's net income was $5.33 billion, up from $4.48 billion a year earlier.

Company executives said their focus on low prices, improved merchandise, and faster delivery continues to attract shoppers across income levels. Walmart CEO John Furner stated that the results reflect a continued focus on delivering better shopping experiences, a broader assortment, and faster delivery. Notably, the company reported some of its strongest market share gains, with significant growth coming from households earning over $100,000 annually.

This shift is occurring as lower-income shoppers face sustained financial pressure, a dynamic some economists refer to as a K-shaped economy. More than 150 million...