Walmart's revenue from retail gasoline sales fell slightly in the company's fiscal first quarter as the role fuel sales play at the world's largest retailer continued to weaken, the company said on Thursday.

In its fiscal 2025 first quarter ended April 26, Walmart said the contribution from fuel sales to the company's overall same-store revenue change fell by 0.1% year to year. In its 2024 fiscal Q1 result, the company said the contribution from fuel sales fell by 0.6%. In fiscal Q4, the company said its retail fuel business reduced its company-wide same-store sales growth by 0.2%.

A breakdown of the retailer's data showed the retail fuel business at its Walmart stores had no effect on revenue. But at its Sam's Club warehouse stores, it said fuel sales reduced Q1 revenue by 0.9%. Sam's Club often offers more aggressive pricing at its fuel outlets to entice customers into its stores.

The company's recent results reversed a two-year period during which motorists searched to find cheaper fuel at a time of historically high gasoline prices.

Over that time, Walmart's retail fuel operations made solid contributions to total sales increases.

According to OPIS MarginPro data, the company's company's fiscal Q1 rack-to-retail margins at both Walmart and Sam's Club stores in the U.S. were mixed compared with the year-ago period. In Texas, where the company has about 75 Sam's Club and 95 Walmart fuel outlets, Q1 margins were down by 0.5ct to 1.5ct year to year.

Walmart doesn't disclose its fuel margins, but they could be higher than OPIS's numbers because the large volume buyer can obtain supply at discounted wholesale prices. The company also could be deliberately selling fuel at a discounted price to attract customers, given that the fuel business represents a small part of its total revenue.

Arkansas-based Walmart, which reported higher fiscal Q1 earnings than a year, said its income from Plus, its membership program, rose by about 13% year on year. Using the Plus app, members receive 10cts/gal off at Exxon and Mobil stations, up to 10cts/gal off at select Walmart and Murphy stations as well as member prices at Sam's Club fuel centers.

For the quarter, Walmart, which has about 10,500 stores in 19 countries, said fiscal Q1 sales were $108.7 billion, with its same-store sales - defined as sales at stores opened at least a year - rose by nearly 4%, excluding fuel.


This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.


--Reporting by Frank Tang, ftang@opisnet.com; Editing by Jeff Barber, jbarber@opisnet.com

(END) Dow Jones Newswires

05-16-24 1645ET