BENTONVILLE, ARKANSAS — Walmart reported first-quarter revenue rose 7.3% to $177.8 billion for the quarter ended April 30, and issued guidance to investors for the current quarter that fell short of expectations. Net income climbed to $5.33 billion from $4.48 billion a year earlier, while adjusted earnings per share of 66 cents matched analysts' expectations.

Same-store U.S. sales at the Bentonville, Arkansas-based retailer grew 4.1% in the quarter, with growth from eCommerce and membership fees contributing to the increase. U.S. online sales rose 26%. Higher-income households are leading Walmart's gains across categories. The company, which is the nation's largest private employer and one of the biggest retailers in the United States, expects sales growth between May and July to slow to between 4% and 5% year over year due to higher gas prices.

Walmart noted that higher fuel costs partially offset its income gains. Regular gasoline averaged $4.56 per gallon nationwide on Thursday, up from $2.98 before the war with Iran, according to AAA. Diesel fuel averaged $5.66 per gallon nationwide, about $2 more than at the start of the war, according to AAA. During the first quarter, the average number of gallons purchased per customer at U.S. Walmart and Sam's Club gas stations fell below 10 for the first time since 2022.

"I think higher tax returns muted some of the pressure related to higher fuel prices and as we're in a period of time right now where those tax refunds are largely not coming in, I think consumers are going to feel more of that pressure from higher fuel prices," Walmart finance chief John David Rainey said in a television interview. "It's something that we're keeping a close eye on," he added.

Inflation rose 3.8% in April, its highest level in nearly three years, and consumer price increases outpaced wage growth for the first time since 2003.

Walmart said its guidance does not assume any impact from IEEPA tariff refunds. The Supreme Court ruled earlier this year against some of President Donald Trump's tariffs. Citi analysts estimate that Walmart could receive more than $10 billion in tariff refunds.