Walmart's online sales rebound; Flipkart deal may hurt EPS by $0.25-0.30

E-commerce sales grow 33%; gross margin slips 23 basis points

Walmart Inc on Thursday said profit margins during the first quarter remained under pressure due to price cuts and higher freight costs, weighing on its shares even as sales and earnings came in stronger than expected.

Walmart’s gross margin, which has fallen for four consecutive quarters, was down 23 basis points in the quarter ended April 30. Within the US division, operating income fell 3.1 per cent from the prior year.

The weak margins overshadowed strong first-quarter results and progress in Walmart’s efforts to keep pace with rivals like Amazon.com. 

Walmart's e-commerce sales grew 33 per cent, above the 23-per cent growth in