Walmart Inc (NYSE:WMT) stock fell 5.96% (As on May 18, 11:33:11 AM UTC-4, Source: Google Finance) after the company posted reported stronger sales for its fiscal first quarter, but its profit took a beating as the nation’s largest retailer grappled with surging inflation on food and fuel and higher costs from a snarled global supply chain. Walmart is particularly sensitive to rising food prices because it’s the largest seller in the U.S. Walmart is using years of expertise from monitoring surging prices in other parts of the world like Mexico and parts of South America where it does business. Sam’sClub comp sales increased 10.2%, and 17.4% on a two-year stack. Membership income increased 10.5%. Walmart International net sales were $23.8 billion, a decrease of $3.5 billion, or 13.0%, negatively affected by $5.0 billion due to divestitures, and $0.4 billion from currency fluctuations. Positive comps across all markets. Global advertising business grew more than 30%. Sales at stores opened at least a year at Walmart’s U.S. division rose 3%, below the fourth quarter pace of 5.6% and the 9.2% jump in the third quarter. Online sales rose 1% in the fiscal first quarter as growth has slowed from the pandemic-infused sprees of early 2021. That’s down from 8% growth in the third quarter. Net income attributable to the company slumped nearly 25% to $2.05 billion in the first quarter ended April 30.

WMT in the first quarter of FY 22 has reported the adjusted earnings per share of $1.30, missing the analysts’ estimates for the adjusted earnings per share of $1.48, according to a survey by Zacks Investment Research. The company had reported the adjusted revenue growth of 2.4 percent to $141.57 billion in the first quarter of FY 22, beating the analysts’ estimates for revenue of $138.8 billion. Consolidated gross profit rate declined 87 basis points, primarily due to Sam’s Club and 38 basis points in Walmart U.S. on elevated supply chain costs and product mix. Consolidated operating income was$5.3 billion, a decrease of 23.0%, negatively affected by $0.3 billion from divestitures.

The company expects fiscal 2023 earnings per share to fall about 1%, compared to its previous forecast of a mid-single digit increase. Capital expenditures is expected to be upper end of 2.5% to 3% of net sales with a focus on supply chain, automation, customer-facing initiatives and technology. 2023 Consolidated sales is expected to increase about 4% in constant currency.