Walmart (WMT) Q1 2026 earnings call transcript

Welcome everyone. We appreciate your participation and your interest in Walmart. Today, I will be joined by one of our main office in Bentonville, all of the executive directors of Walmart, Doug McMillan, and financial manager John David Rene. Doug and John David will share their views about the quarter, Then we will open the line for your questions. During the question and answer section, the executive leaders of our sectors will join us. John Verner from Walmart United States. And Kath MacLean from Walmart International. And Chris Nicholas from Sam's Club. For more details about our results. In addition, the most prominent points according to the sector. It is important to note the profit and the presentation of the sponsor on our website.

We will do our best to answer as many questions as possible during the time dedicated to this call. The Thank you for joining us.

We will begin today by thanking our colleagues. They are continuing to investigate the results of today, while working on developing our our business to enhance it tomorrow. We have more than 475,000 employees participating in the Walmart shopping program, 81% of whom work at the hour. I would like to thank all of my colleagues who listen. Point. In the first quarter, we achieved growth in sales by 4% and profits by 3% with the fixed currency. We also achieved growth in international sales by 7.8%. We achieved growth in American retail sales by 6.7%, except for fuel, and growth in the US Walmart sales by 4.5%. These strong results for the first quarter were not paid by inflation, but were transactions and units are the main engine of our interests.

Worldwide, we achieved growth in the electronic trade by 22%, where each sector achieved growth of no less than 20%. The savings are in a good state. So, the performance of the first quarter was as we expected from the interests, and better than what we expected from the profits. It was a good first quarter. There is a lot of what is called to admire in how our development and our current location. We feel proud of our team, our strategies, our shops and our tools. And we are proud of how we paid for the growth of the electronic trade in a way that does not serve the clients and the members in a better way. But it restores the model of our work, which produces more profitable work with higher returns over the long term.

And the speed of transportation continues to support our work. We will reach nearly 95% of the United States population with delivery options within 3 hours or less. For Walmart in the United States, the number of delivery operations increased by less than 3 hours by 91% in the first quarter compared to last year. And in China and India, we are talking continuously about delivery times that take minutes. We are confident in our ability to enhance this work. Even with our dealings with the changes in the cost of goods, our chances of the near and far are clear. The direct challenge is of course to deal with the impact of the US currency in the United States.

Our minds and our ways have not changed since the investment conference we held last month in Dallas. I would like to thank President Trump and Secretary of State Bessent for the late progress. We hope to bring this to a long-term agreement between the United States and China to avoid major declines in the US currency. We will make the most of our efforts to maintain our prices at the lowest possible level. But looking at the size of the national drawings, even with the reduced levels that I announced this week, we cannot suppress all pressure due to the negative profits in the cash register. Managing the cash register is always of great importance, and in this case, its importance and difficulty increase.

It is useful that we enter the second quarter with a sustainable cash register. with efficiency. It is also useful that we exceed the profit margin in the international electronic trade and that we have new businesses with high profit margins such as membership and advertising. It is also useful that we sell a wide range of food and consumer goods and general goods. It is also useful that a large part of our products are renewable, which means that we can continue to provide them, so we do not have to make a final decision about the quantity. Instead, we can adjust expectations and cooperate with our suppliers to gradually adjust the quantities with the impact of the national In the past year, we bought a stock of $296 billion from the United States, and in 2021 we committed to adding $350 billion more to our purchases in the United States over the next ten years.

He recently announced additional support for American companies through the Anmo with us program, which will provide small companies in the United States with the education, training and resources they need to start working with us. It may surprise you to know that almost 60% of our suppliers in the United States are small companies. We will also continue to hold the open call in October, where we call on American companies that do not deal with us currently to provide their companies and products. This day is one of the most enjoyable days of the year for us as merchants. The goods that we import from all over the world, from dozens of countries, to the United States, The United States includes other major markets, China, Mexico, Vietnam, India and Canada.

China represents a large size in some categories, such as electronics and games. All the national drawings are a pressure on our costs, but the drawings imposed on China are the most influential. The pressure of costs began from all the markets affected by the national drawings in late April and accelerated in May. Let me explain to you how we deal with this matter and what we do in the future.

First, we are striving to maintain the prices of food and consumer goods as low as possible. Food prices in the United States have risen in recent years, and our customers have felt that for a long time. We will not allow the pressure of costs related to national prices on some general goods to affect food prices. But as far as food is concerned, the prices imposed on countries such as Costa Rica, Peru and Colombia affect the prices of imported goods such as bananas, avocados, coffee and fruits. We will continue to work hard to control what we can control to keep the prices of food at the lowest level. And, for example, to control the amount of fresh food.

In some cases, we keep the prices of our stores as they are, despite the pressure of the cost of the general prices. The remaining appearances of the mother's day in Sam's Club in the United States is a good example of that.

As for the affected general goods, we will transport the production as much as possible. This is an easy and fast process, but we have been working on it for years. So, it's not like we started to make changes. In some cases, we will bear the costs within the category or the division and we will not transfer the cost of the cumulative definition attributed to each commodity on a limit. We will manage the mixture of products through commodities and categories and companies. We also have suppliers who convert the materials from the components affected by the cumulative definitions, such as aluminum, to glass fibers where there are no definitions. Our merchants and supply team and suppliers make creative efforts.

The The most important thing I have reached out to him today is, first, we achieved a good performance in the first quarter. Second, our strategy and our abilities in the field of selling multiple channels are strong. We will continue to improve in terms of the speed of delivery of products and we will continue to expand the scope of our new business. We will continue to push the growth rate and we will control what we can control. We are still confident in our ability to enhance this work even with our confrontation with the change in the cost of goods. Our chances of the near and far range are clear. Thank you very much. and our colleagues in the main office and the technology department to manage the near-term management with work on building our future in the long term.

We have worked in difficult environments for years, and we will overcome this stage stronger than any time past as we did before. We have the week of colleagues and contributors soon, which is the favorite week of the year. I look forward to seeing many of our colleagues and many of you here in northwestern Arkansas.

John David, I will leave the floor to you. Thank you, Do. The performance of the first quarter shows the strength of our work and the importance of our strategic involvement in the shadow of a changing environment The continued growth of our sales in all areas of the company is what reflects the competitive advantages that distinguish us in the retail market. Our commitment to providing value and comfort to our customers more than ever before is recurring. At the same time, we are making progress in high-growth areas such as advertising, membership and market services. The results in April were better than expected, especially in Walmart, the United States. Sales improved in all sectors with a quarter advance, with that in the season of the strong harvest, and our division improved the management of the storage and cash that can be controlled, which led to a stronger performance than expected in all of the total profit and net profit.

The total of the revenues increased by 4% with the fixed currency, despite the past year's the US dollar, which was paid by a strong growth in the electronic trade by 22%. The changes in the exchange rates led to the decrease in the results of the announced sales of 2.4 billion dollars or 150 main points of growth. Walmart's sales in the United States rose by 4.5%, which is supported by a strong growth in the electronic trade by 21%. The sales volume continued, especially the retail sales, with a slight growth in the comparative sales and a steady market share. and the sales of health and health products have been significantly increased, which reflects an increase in the size of medical and medical supplies that are sold without a medical supply, while the sales of general goods have decreased slightly as a result of the weakening of electronic goods, home products and sports goods.

We focus on providing added value and managing our price-to-value site with the availability and time of our customers through electronic trade options. In Walmart, we have more than 5,000 low-cost products.

We have seen a rise in the sales of special trade signs, where its spread increased in the stock market by 60 basic points compared to last year. Our retail sales increased by 7.8% in the fixed currency, which reflects the market power in China and in the UK. And the electronic trade has witnessed a strong growth in numbers in various markets, paid for by the service of receiving and submitting through our electronic platform. We are working to increase the delivery speed for our customers. On the international level, the number of products that are delivered on the same day or the next day has increased by 35%, with With the delivery of about 45% of these products in less than three hours in WMEX, and exceeded the government's inflation rates for last year, and that coincided with the fiscal year, and some slowdowns at the beginning of the quarter as a result of a more weak and more volatile overall economic environment, the sales decreased a little from the expected, but we feel optimistic about the rebound that the commercial activity witnessed recently, as the sales returned to our expectations.

The sales of Sam's Club, the American comparison, X Fuel, increased by about 7%, The in growth, where its use rate increased by 600 basic points compared to last year. More than 50% of our members are digitally engaged in their dealings, either through the internet through the Sumps system or by using digital solutions inside the club. In terms of profit, the total profit of the United Bank increased by 12 basic points, as a result of better results than expected in Walmart, which partially met less results than expected in international markets, which suffered an increasing pressure from changes The overall profit margin in Walmart in the United States is 25.1 points, which reflects the continued management of the stock market, with a decrease in the level of declines and improvements in the business mix, which has compensated the excessive pressure resulting from the mix of goods.

With the development of our business model, profit contributions are increasingly affected by a variety of factors, including the improvement of the economic and electronic trade and business mix. We achieved the profit of the electronic trade in all the United States and at the level of the world's first quarter for the first time, which is a significant achievement for our company. In the United States, the cost of electronic trade delivery decreased with our continued expansion of delivery processes for the last quarter and with the payment of customers to the fastest delivery. The business mix, especially in the areas of high profit, such as ads and membership, contributed to the improvement of the first quarter's profit. Our advertising activity in all markets is 50%, including Fizio.

Walmart Conquered in the United States, which does not include Fizio, is 31%. Advertising in Sam's Club in the United States has risen by 21%, and we have seen growth by 20% in our international markets led by Flipkart. The investment of the membership rate has also risen by approximately 15% at the company's level. In the United States, Sam's Club has continued to grow in the number of new members and the increase in the number of new members, which has led to a growth in membership rate of 9.6%.

While Walmart Plus's membership rate has doubled in international markets, Sam's Club's membership rate in China has increased by more than 40% with the continued increase in the number of members. The Sems Club's costs in the United States have decreased by six main points, with the benefit of covering the cost of restoring the business structure for last year. As expected, the decrease in international costs and the Sems Club in the United States reflects the plans for investments and the wages of employees.

As for the decrease in Walmart's costs in the United States, it reflects the increase in consumption costs in addition to the cost of operating Fizio after the bankruptcy. As we mentioned in our meeting with investors, we have seen costs of higher security demands than expected. and we rely on a higher rate of demand based on the sectors that indicate the increase in risk adjustment factors. We expect this trend to continue for at least several seasons. The average operating income was better than expected by a growth of 3% with the fixed currency, and the profit of the average share reached 61 cents, which is higher than expected. More importantly, our savings are at a good level, as it rose by 3.8%, and this is of great importance, especially with our entry in a period affected by the nationality definitions, and the cost of the products will be affected, which increases the difficulty of expecting a request for each product.

This is a very complicated situation, and we will need to manage the quantity decisions with the measure of the flexibility of the price of the affected products. I am pleased to have a team of experts and many options available to us, and tools that enable us to manage this situation in a well-educated and competitive way. It gives us a flexible financial situation to take advantage of the opportunity to increase the market share, with the continuation of investment in long-term strategic value areas such as the completion of the supply chain, expansion of stores, and renewing it, and technology. In April, we completed the issuance of 4 billion dollars worth of religious bonds with almost attractive conditions.

We still expect the capital inflows of the financial system to rise between 3% and 3.5% of the sales. During the first quarter, we repurchased stocks worth 4.66 billion dollars, which is a We have a lot of confidence in our work, and we will continue to increase our opportunities through the re-purchasing of stocks in case of any fluctuations in their prices.

As for the expectations, as a usual procedure, we provide a update to our annual expectations at the end of the second quarter of the term. But I would like to clarify how we deal with the impact of the general picture. I would like to start by confirming our message from our meeting with investors in early April. We have great confidence in our strategy, and there is no time in this period that makes us change our opinion in what we previously mentioned about our long-term financial framework to achieve annual growth in sales by approximately 4%, and the growth of operating income by a faster rate than the growth of sales. We have seen this in the past during times of economic uncertainty.

We are looking to increase our market share and exit from this stage in a stronger way. We expect this period to be similar. We will rely on an offensive strategy, and we may invest in a positive way in areas to improve our value. But we are not avoiding financial impacts in the short term. We have conducted internal studies to develop different scenarios related to current business policy discussions. These scenarios include assumptions about the duration of the continued co-ordination at certain levels, in contrast to its decrease to a lower level as soon as the bilateral trade agreements are completed. We also need to place assumptions about the flexibility of demand, in addition to the overall economic situation in this environment.

It may be obvious, but it is worth noting that the range of possible results is much wider than it was when we presented our original annual expectations. However, in the scenarios that we believe are the most successful and that we have by its results, we still cannot achieve our annual annual expectations for all of the sales and operating income. These scenarios include the belief that trade policy discussions will lead to dual agreements or initial agreements or the existence of good-natured discussions that head towards agreements that may be less than that of the initial proposal in early April. However, if we witness a return to higher initial levels, it may have a great impact on our financial data greatly, but it may threaten our ability to increase profits annually.

In any case, we are confident that we can increase sales within the range that we have determined for this year. Although the average income of each unit or the other units may differ greatly in these scenarios, while the fluctuations may be from a quarter to another large, we still believe that we can achieve our expectations for the entry of operation for this year, based on what we know and our assumptions that you pointed out. If the trade was positive in the next few weeks, there might be room for growth. But if the high prices continue for a long time, there will be a risk of decline. We will know more in two months, but we are ready to manage this situation with equal or better efficiency than other traders.

Moving to the second quarter, we find that the work environment is facing major fluctuations, which makes The forecast for the near future is very difficult. The rate of inflation will be more than usual. The US is the first market without a dispute in the supply chain.

As for the least third of what we sell in the US is imported products, China, Mexico, Canada, Vietnam and India are the largest markets. As Doug said, we feel the tension in the recent trade negotiations, especially in relation to China. However, the level of the nationality of the The first method is related to our method of calculating the cost of storage for most of our work in the United States, which is the method of carrying the storage, REM. We have always used the REM method in Walmart in the United States. This is not a new thing for us, but it is a common calculation method in the storage sector. The REM calculation depends on the actual cost of storage to the price of its sale by the storage to account for the end of the period, and then the cost of goods to be sold.

With the rise in prices, this may lead to an increase in profit margins on our stock, and thus an increase in profit margins on goods compared to periods of price stability. And in case of a need to register later decreases, this may have a counter effect. Whether these fluctuations are positive or negative in terms of the additional cost that may be added to the stock we are currently buying, is not predetermined in our work, and may lead to fluctuations in profit margins and quarter-year profits. The second thing is the possibility of a the current exchange rate continues to be quarter-long, we expect a decrease in the growth of the announced sales by about 120 points.

As for the operating income, the expected results for this quarter are much wider. The information related to the current trade negotiations changes weekly and in some cases daily. It is also important that we provide ourselves with the necessary flexibility to move effectively in the face of these circumstances.

Finally, our calculation method for the deposit may have a greater impact on our profits than the normal profits. For these reasons, the expected results for this quarter are very wide to the extent that it is impossible to provide reliable expectations for the operating income that investors can rely on. So, I invite you to think about the next two quarters in general. We may see major profits related to profit in the second quarter, and some of these profits may compensate with decreases in the third and fourth quarters. For this reason, we emphasized the importance of managing the stock market efficiently in the face of these circumstances. And yet, we believe that we are still able to achieve our expectations for the entry of the operation this year.

In conclusion, we look forward to the future, and although the operating conditions are expected to remain changing, our strategy is clear. We have a strong momentum in the growth of our assets, and we use our assets to protect the profits with our growth. History tells us that when we face these times of economic uncertainty, we will come out of it a stronger company. And we expect the situation to be similar this time. We appreciate your interest in our company, and we are now ready to answer your questions.

Thank you. The first question of the day is from Bullwi from Citiroop. Please go ahead with your question. Hello, thank you all. Thank you very much for all the details about the pricing philosophy, which is related to the nationality. It was very useful. My question is related to e-commerce. The company has achieved a great achievement in achieving profitability in this sector. I would like to know what helped you overcome this obstacle and where the company is heading from here in terms of profitability in this sector. compared to the rest of its activities. And what are the main factors that you see to improve the profitability of the electronic trade from now on?

Thank you. Paul, thank you for your question. With you, John David. Let me start by presenting some additional details about the profitability of the international electronic trade. We have noticed that we have achieved this on a global level and also for the United States. And if we analyze this according to the sectors, we find that the American market was profitable and also strong, while the international markets were not profitable in a small way. But if we collect all these sectors, we have achieved a profit of a quarter. So we are very pleased with that. There are several factors that contributed to this performance, especially in the United States.

And John will talk about this in more detail. But one of them is the burden of our network. What he means by that is that with the increase in the number of our customers who come to Walmart and benefit from our electronic trade offers, we have become able to distribute the transmission operations to several homes. Think about the possibility of a transfer of a loan to five homes in one street instead of one house only. And thus, with our growth, we continue to distribute this cost to a larger size than the demand. The second factor is the cost of the transfer. And here John and his team achieved a great progress in reducing the cost of the unit.

And this is part of a large part of the construction of the supply chain that we have implemented. But part of that is also the preparation of the clients.

to pay in return for the quick delivery service. And I help with that delivery within an hour or three hours. We noticed in the last quarter that about a third of our employees benefit from this option. And this indicates the importance of rest. And we have seen an increase in that even in the last period. So, John, you may want to add more, but for me, these are some of the obvious things that contribute to improving profitability.

Thank you, John. David Poole, I have some notes. If we look back over the past few years, I think it is a mix of investments that we made over the past contract, which includes unifying our applications in one application and building new distribution centers and enabling stores to be part of Omni. The delivery speed was encouraging so far, so last year the delivery operations increased, which decreased their duration by three hours by about 91% compared to last year. John David also mentioned that the size of the operations has been delayed for several years, but we are happy with the progress and growth. We have achieved growth by 21% for several consecutive seasons. For the customers, in particular, what really impressed me was what the team presented in a smooth way in the customer service, where they can trade in the time and way they prefer.

For example, Walmart customers can trade from the counter or trade with the car service or even the home delivery service. We have seen delivery options, whether from our first or third parties, including delivery services for our customers, growing strongly over the past few years, and this has led, as Sean David mentioned, to a decrease in delivery costs due to the density of requests and its repetition. All of this society enabled us to integrate our work with the announcement and our data, and when we put all these factors together, we feel very proud of our team to be able to sit here today and announce the achievement of a quarter of a year profit for the first time, as we told you about a month ago when we were with Fidelas.

The most important thing is that the team has completed the quarter with a strong momentum April was a strong month and we achieved a strong performance on the day of the opening We have been able to deliver the flowers and other things that people need at the last Thank you all Good luck.

I will be happy to answer your question.

Yes, thank you, Taimi. This is Dohu. I will start first, then John David can comment. I think our expectations for this year enable us to be running properly. I think that with the progress of the seasons, we may take different choices based on what happens in prices. The situation is changing. As you know, we are watching what happens in the cost of goods. There are many changing factors in what is related to marketing these days, as well as in what is related to the prices of the distribution. We will watch the price gaps we have, and we will also watch what the customers say to us, and the response to their actions and the pressure they feel.

In short, if we need to invest more, we can do that. However, I strongly desire that profit will be made faster than sales. We have done this for a long time, and I think we deserve that, and you deserve it too. And if we manage this matter in a way that balances the interests of all parties, of the clients and the shareholders and others, so that we maintain low prices that are enough to help people, and achieve growth in profit with a faster rate of sales, this is the real success for me.

I would like to confirm the points that Hadou mentioned. I feel, Simeon, that we are achieving the best balance between investment and profit growth. If we look at the past two years, we have achieved growth in operating income by 10% in the middle. Our expectations, as you know, is to invest about half of this amount this year. So, this is an investment year. But even with that, we hope to be able to increase profits by a faster rate than the sales. If there is something that distinguishes this quarter from the financial side, it is the variety of our income sources. And so you see all these things appear. If we take advertisements and shares as an example, they represent a quarter of our profits.

The shares were very strong during the quarter. We achieved growth in each sector of the global share market by more than 10%. And the national share market exceeded 20%. So, we see this variation in our income sources that allows us to continue to adopt a long-term view and invest in this work. These things are always a bit complicated in terms of achieving the best balance. But we feel that the plan we have now is the best for us.

Thank you for your attention. Thank you.

Thank you, Christopher.

With you, John. I will start with the comments that John David made at a previous time. John said that the market is not in a good condition and that the market is not in a good condition. He said that the market is not in a good condition and that the market is not in a the the the the the the the and the time to remember the quarter-final in terms of the stabilization. Last year was a terrible year, then the holiday was delayed a lot, so the performance in February was weaker than we expected. March returned to its normal, and we finished the quarter with a very strong performance in April. In addition, the holiday of the strong holiday reminds us that the clients give us the priority for seasonal events, gatherings, and eating at home, and more importantly, we want to provide great comfort to our clients.

If the customer chooses to shop in the store, we strive to provide a special shopping experience for them. We are very pleased with our special renewal program. We still witness high-speed results and high levels in the main sales performance after renewal. The levels of rapid delivery are among the highest levels that we achieve in the company. During the remaining period of the year, we will continue to expand our energy and our ability to deliver quickly from distribution centers, whether that is in the same day or the next day or during two days. We have about 100% of our quick delivery options on a yearly basis. As you heard this morning, it has grown by 91%.

So we will continue to focus on the value through wonderful products, such as meat, vegetables and fruits, in addition to our luxury products. We are very proud of the progressive development in the clothing sector. Games have achieved strong performance during the last quarter, especially during the season of holidays. We will continue to train to the fullest with our customers throughout the year.

I think from the point of view of Sam's Club, I confirm everything that John Lithow said. I think we are currently relying on the power of the sales model with the We see that relaxation is something that everyone cares about. In reality, what we give them is the value of time. If we make things easier for them, they will have more time. And this is a great value for them. So, I would like to conclude by saying that the growth of our organs and the growth of the organ's income by 5% to 10% is due to the renewal of more organs and the inclusion of new organs and the increase in the share in the G+.

And we notice that in all the income plans. Thank you for your question.

Certainly, Peter, thank you for the question. Regarding the allocation of capital, I will start by returning stock purchases. The correct way to think at this level of our business is to be between 3% and 3.5% of the sales. So, it is possible that this will grow with the future. It may be a little bit between the upper and the lower limit. But looking at what we know and the opportunities we have to achieve better returns through some of these investments, we do not hesitate in that. And we look at the matter from a long perspective even in the context of the current operating environment, where we see that some of these costs have taken in the rise.

We are looking at the capitalization of the capital from the perspective that every dollar must strive to achieve the highest possible return, and this is one of the best ways to spend the dollar. In addition, we witnessed major price fluctuations during the last quarter as a result of some doubts that have spread in the market, and we are following an effective method to regain the purchase of stocks, as I mentioned earlier, where we bought more stocks than we bought last year in full. and we will continue to do so as we notice price fluctuations because we believe in a firm belief in our strategy and plan, and we believe that there is a great value for the investors to achieve.

So when we witness these fluctuations, we will see more courage. I think it is fair to say that we will spend more on re-buying stocks this year than we spent last year, especially since we started in the first quarter of this year. The total amount, as you know, has not been decided yet, and we will see how the prices will be. We need to achieve balance between increasing profit distributions and investing in ourselves through capital inflows.

Hello Brad. With you John. We have achieved good performance in the quarter of a year with Walmart Connect as you mentioned, where it rose by 31% on a yearly basis. We have also achieved strong performance in all parts of the world and in other ads that we run. We are in the first stages of Vizio's contribution. I am excited about the plans that we have put in Vizio for the rest of the year. It is a great operating system, smooth to the point and easy to record, and we look forward to the contributions of Vizio team in the future.

Regarding the main advertising activities, we have achieved a strong growth in ads with our sales platform. And the overall value of our sales, GMV, remained stable on our platform from the middle to the end of the 20th century. And in the past quarter, we also reached the middle of the 20th century. We also maintained a continuous strength with our suppliers from the first and third parties. So we have a wide mix of capabilities. In addition, we launched this quarter as a service of drug delivery, which is another opportunity for our customers to enjoy the flexibility that we offer. So, I think we will face new opportunities with our progress and our aspirations for the future.

But in general, we are very pleased with the progress, the growth and the team that we formed in Walmart Connect.

As for the first part of your question, I was referring to the level of the currency drawings that were announced at the beginning of April. Remember that we were a week ago at 145% of the Chinese currency drawings. As you know, the preparations that we make for this day are necessary. When we started the preparations related to profits, this was the framework which we do according to him and in the context of a group of drawings that is 145 percent and group drawings that are close to 50 percent in other countries, this is not in the favor of the trade of division or in the favor of the economy. We are happy and satisfied with the progress that the administration has made to reduce the group of drawings to this level, and the direction that we have presented today, or in fact, to confirm our previous directions, are related to the group definitions at this level, but let me make sure we still We believe that this level is very high.

There is a certain commodity, a certain category of goods that we rely on in import from other countries. And it is possible that the prices of this commodity will rise, and this is not in the favor of the consumers.

Yes, thank you for the question, Edward. Thank you for watching. and manage it in the coming weeks and months. This is a great situation, and our new customers and our renewal team have a stake in this, and they do this every day. With the change in the numbers of the nationalities, they have done a great job of adapting and re-calculating the quantities and rethinking the matter. It may become more difficult when we make decisions related to things such as Halloween and Christmas in an early time, and how we determine the required quantity and what is the nationality number that we use. Thank you.

smoothly. Therefore, we do not have any fears currently about the influx of goods in the United States. Therefore, our stock is flowing smoothly. I have previously mentioned that the overall growth rate of GMV goods in the electronic market was specific during the past few quarters. As you saw in the statement, we notice this again at the end of this quarter. We have seen a strong performance in the electronic trade during April, and this is a major factor in the health of the electronic trade in general, with a growth rate of one The 21% has been there for a while, which is what makes us happy.

Finally, in addition to our stores and our own electronic trade, and our new distribution centers, and our distribution capabilities, and our work with external agencies and distribution services, we were able to own the ads and data, which helped us achieve our first profit in the first quarter in the United States.

Roby, thank you for the question. I will start, and some may want to participate. Well, the prices of general goods have been seen as a trend for more than a year so far. We have seen the effect of this, and it can be considered a slight trend in the week of Sunday during the quarter. However, it is important to note that we have achieved We have achieved growth in the number of units sold during the quarter, so we are still witnessing progress in this field, but as you know, the consumer is under pressure. We noticed in the past two years a transformation in the trade channel from the general commodity to the essential commodity instead of the perfection, so people spend more on food.

So we will continue to monitor this matter in the future, but the team specifically made a good progress in the formation of the products we have and in the development of the general commodity John, do you want to? Certainly. Certainly. Ruby, good morning. We saw a strong growth in groups such as games, children's clothes, and return necessities and others in various sectors of the company. We also achieved stronger growth rates in the electronic trade in general, where the growth rate reached 21%, which reflects a strong diversity in different groups. And looking at our results at the end of the quarter, the performance of February was weaker, as we witnessed a harsh weather so far, as it coincided with the year of the Kabi.

The snow fell in all directions of the country, including the south-east of the country and on its shores. Therefore, the February weather was unusual. As we mentioned earlier, the performance of March was closer to the normal situation due to the coincidence of the year of the Kabi and the delay of the Eid al-Fasih. With the advent of the Passover, the sales have improved significantly. This morning we noted that we recorded a slight decline in the sales of general goods due to the recession, but we felt very optimistic about the results we achieved from the end of the Passover and until the end of the quarter. In Sam's Club, we achieved a positive quarter in General Motors' sales in the context of a lagging economic environment.

Therefore, the number of units is the main driver of this performance. Thank you.

The first is that I would like to be praised for the skill, the skill of the pharmacy and the field work team who make great efforts to help clients and patients in everything they need.

Second, the drug delivery initiative that we launched in the first quarter, which did not cut its benefits to enable customers to receive their medical specifications in the way they prefer, but also contributed to the increase in the number of new digital users in our electronic store. We have a digital service through text messages for a while, where you can renew the specifications. And now, with the ability to deliver, we notice an increase in reception on the creation of accounts on the website walmart. com through our application. We look forward to providing more services to them in various fields. It is worth mentioning that Samiz won again, and for the ninth year in a row, with the JD Power award for the best pharmaceutical company this year, and its annual revenues are still exceeding 10%.

So we are very optimistic about this commercial activity.

I will start with the first part of your answer, then I will leave the floor to Kath to talk about international markets. It is difficult to predict. We do not know the level of the joint drawings or the level of the bilateral agreements that you will make. Well, we know that we will probably see a second quarter of a rise in prices above the usual. For this reason, as Doug and others mentioned, we will continue to look at the international markets. For this reason, as Doug and others mentioned, it is very important to manage the stock in the right way in these circumstances, because that reduces the possibility of lower prices in the third quarter and perhaps even in the fourth quarter.

So we can see the degree of flexibility of the demand. It may be 30% higher or in other cases 10% in some products. We will see that we have a great team of merchants and we trust them completely to be able to deal with these conditions. I think we can overcome this stage successfully, and perhaps even better than any other way. But there is a lot of uncertainty and hesitation. It is a dynamic and changing situation, and we are confident that we will be able to achieve good results during the year, as we expected. However, the hesitations from one quarter to the other are difficult to predict, and we will see how things will develop.

Yes, I will continue to work on it, and I will continue to work on it. I will continue to work on it, and I will continue to work on it. with it and we will see how things will develop. Yes, I will continue from here because I clearly indicated the existence of quarter-year and international fluctuations when we were together in Dallas. If you want a description of the performance of the quarter, I said it was good, but I think that we can achieve better results. I don't think my team will be surprised to hear this because this is our usual way. When I look at the market structure, we had markets are suffering from a relative weakness, including Mexico and Canada.

I think we have invested in strategic markets with high growth, such as India. You have heard Kilian, our colleague in Philipkart, talk about this when we were together in the ICM conference. Well, but if we look at the overall results, I think we have also witnessed some fluctuations in the results of the year, such as the year of the cow. So, when I look at the overall picture, I think we are working in markets with high growth. We have very strong businesses and we have a leading position in the field of selling multiple channels in those markets. Therefore, I think we still feel completely satisfied with the company's leadership from a growth perspective and achieving growth in profits faster than sales over the year.

This is Doho. Perhaps we can repeat once again the point related to accounting in the accounting sector regarding the timing between the fourth, second, third and fourth. In the second quarter, if we have a profit margin, we apply it to all the savings available to us, even if we do not sell it in that quarter, and even if we do not sell it at the end of that price. Therefore, we may find ourselves in a situation in which the profit of the second quarter is high in an unusual way, and the results are wider, and for this reason we do not provide expectations for this quarter. Then think about the third and fourth quarters. Can you sell it at the price you raised it on?

Yes or no? How does the profit margin look like? How do you manage the decreases in prices? How do you manage the savings efficiently during the third and fourth quarters? and there may be other increases in profit in the fourth quarter. We do not know that now because the situation is very different. I hope this will be useful for everyone. I just want to make sure that you all understand that this is a matter of calculation and a matter of timing, but in the end it depends on how accurate our expectations are for sales, storage management and decision-making.

Yes, Guregu. This happens gradually. As we mentioned earlier, we started to notice increases in April and May. We focused specifically on the transfer of back to schools. As you know, when you buy a imported item, the customs fees are higher when it passes through Jamariki. And thus, the cost is higher. Even if the customs fees are reduced later, the cost will remain high. Therefore, I do not consider this a surprising event necessarily, except when thinking about seasonal things such as back to schools. So I think the impact will be gradual. And as we all said, the first thing that comes to my mind is the increase in food prices.

As you know, we have spent many years here witnessing a rise in food prices. And our customers felt that, and they do not want more food inflation. So we hope that changes in politics will help us reduce prices, such as the cancellation of the national drawings on the produce and products that we do not grow locally. So food inflation is a source of great concern for us.

As for the equitability products, it will differ in their type and country of origin. If it is from China, it is normal for its price to be higher. And this change in prices will continue over the year. We will witness a rise in seasonal product prices. So I think we witness a downward pressure that began in April and continues throughout the year on imported products.

And once again, we have worked for years to ensure that we have sufficient supplies. and that we are producing from suitable sources and we are seeking to establish a more flexible supply chain. We have made progress in this regard and I think we are in a good position compared to others.

Therefore, you will see in the coming months, quarters and years a constant focus on expanding the formation of our products to be able to supply our customers with what they are looking for without the need to use another application or go to another site. The capabilities of the supply chain include advanced distribution centers from the next generation and our ability to use our stores to deliver in an effective and low-cost local way and all of them are essential elements in the solution that we can easily use to serve our customers. So, the formation will be our priority.

Second, we want to ensure the availability of the rest of the services suitable for our customers. Our customers need to know where their storage and sales are located. We have an application that they can use on their phones, providing them with a lot of important information that they need.

Third, our customers are looking for those who issue trade signs, develop trade signs, or sell other products by means of the internet. with the clients' profiles of their products. Therefore, the ability to use our data to help them reach the clients' profiles of their categories, then to announce it through the Walmart Connect platform, is a fundamental part of the solution that all our buyers will need.

As for the flexibility, we monitor it continuously and re-evaluate the distribution quantities. This is what we do daily, weekly, monthly, and quarterly. So there will be a period in which we observe this matter from a distance and use better tools and vision to know what we own, where it is, and where it moves. We will continue to ensure the continuity of the flow of supply chains, as we mentioned earlier. We have sufficient storage for our customers in the store and on the shelf. We have fresh and high quality products.

Finally, the distribution center is distributed to us in a good way, so that if the customer requests, we will be able to deliver his request quickly and faithfully with the promise we have made to him.

And if you allow me to talk from a international point of view, we are very proud of the progress that we are making in Flipkart. But if we focus on our other work in the electronic trade markets in Canada, Chile and Mexico, we have achieved the total value of our sales in these markets by more than 30% on a yearly basis. And a large part of that goes back to our registration of more than 4,000 new sellers in Mexico and Canada during this quarter. We also launched the Walmart Connect service for our sellers in Canada and witnessed a great interaction with it. and the number of sellers has risen by more than 80% in Canada and Mexico during the last quarter.

Therefore, we have great growth and strong growth in our business in the electronic trade markets on the international level.

Thank you.

Thank you again for your participation and asking your valuable questions. We have a strong growth and this growth is continuous. and we are confident in our ability to gain the trust of our clients and provide them with the service in the way they prefer. We feel optimistic about the continued strong growth of e-commerce in all our three sectors, where each sector has exceeded 20%.

Second, we work to enhance the model of our work and continue to work with it regardless of the fluctuations in the general picture. The growth of ads is 50% and the growth of membership is 15%. Encouraging indicators to the fullest.

Third, regarding the current situation, we believe that we are in a situation that allows us to manage this situation with high efficiency, and perhaps better than any other side. We will continue to work to serve our customers on a full face and contribute to maintaining the price drop. This is of great importance in such circumstances, and it is our main goal. This is what we are striving for, but we believe in our ability to achieve this with the continuation of our strategy implementation and development of our business model and achieving growth in profits over the growth of sales. This is our firm message, and we are confident in our plan.