Walmart's growth beyond its stores continued in the first quarter, driven by advertising, e-commerce and memberships.

Why it matters: The nation's largest retailer is increasingly making money from the services built around shopping — not just the products on its shelves.

Driving the news: Walmart reported first-quarter revenue of $177.8 billion yesterday, up 7.3% from a year ago, while adjusted earnings per share rose 8.2%, to 66 cents.

• Walmart U.S. comparable sales rose 4.1%, driven by higher customer traffic and increased unit volumes.
• Global e-commerce sales jumped 26%, fueled by store-fulfilled delivery, pickup and marketplace growth.

Yes, but: Higher fuel costs weighed on profitability.

• Walmart said it absorbed many of those costs while continuing to invest in lower prices and expand rollbacks.
• The company also issued second-quarter guidance calling for net sales growth of 4% to 5%, shy of analysts' expectations. Retail analyst Bruce Winder noted that Walmart's U.S. comparable sales growth was "slower than last year and recent trend," which "may concern investors a little."

Walmart shares were down more than 7% as of noon yesterday. The stock is up more than 25% over the past 12 months.

The big picture: Walmart continues to gain shoppers across income levels — not just consumers looking for lower prices.

• The retailer said it saw broad-based market share gains across categories and income tiers, led by upper-income households.
• General merchandise posted its highest level of share gains in five years, with strength in fashion and hardlines, while private-brand sales rose double digits during the quarter.
• Last month, Walmart announced a major redesign of its Great Value brand, one of the nation's largest grocery and household brands — bigger than many major food companies.

Zoom in: Walmart's global advertising business grew 37%, while Walmart Connect U.S. — which lets brands and sellers run ads across the company's retail ecosystem — rose 44% excluding Vizio, which Walmart acquired in 2024.

• Marketplace sales rose nearly 50% — Walmart's strongest marketplace performance in 10 quarters.
• Membership fee revenue grew 17.4% globally, while Walmart+ saw strong membership growth.
• CFO John David Rainey said advertising and memberships now account for roughly one-third of Walmart's earnings — "very different from Walmart of 10 years ago."

Between the lines: Walmart's fastest-growing businesses are increasingly tied to delivery, convenience and digital services.

• Executives said faster delivery speeds are driving customer engagement and more frequent purchases, with Walmart now able to reach roughly 60% of U.S. households in 30 minutes or less.
• Expedited deliveries completed in under three hours accounted for roughly 36% of Walmart U.S. store-fulfilled orders, while store-fulfilled delivery sales surged about 45% during the quarter. Marketplace growth topped 40% in hardlines, home and apparel.
• CEO John Furner said faster delivery is becoming "an engine of operating leverage, not just a better experience for customers and members."

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Crystal Bridges Museum of American Art is expanding its craft collection ahead of its expansion set to debut next month.

State of play: The museum has acquired about 140 works from about 60 artists in ceramics, glass, fiber, metal and wood, according to a news release from the museum.

• The museum previously announced an addition of Indigenous works ahead of the opening and gift of 200 works by more than 100 artists plus funding for future acquisitions to the museum.

The big picture: The largest expansion since the museum opened in 2011 is set to open to the public June 6. The 114,000-square-foot addition to the existing 210,000 square feet will allow for more gallery space and community-oriented spaces for classes, performances and artmaking.

What they're saying: "From quilts to monumental ceramics, the works span a range of materials and forms that can immediately engage our visitors," Jen Padgett, Windgate Curator of Craft, said in the news release.

• "They show technical mastery while also offering compelling personal and cultural narratives that will resonate strongly with our audiences."

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👗 Marshalls plans to open a store at the former Big Lots location in Fayetteville. (Fayetteville Flyer)

⚖️ A Missouri resident has filed a federal discrimination lawsuit against a "whites-only" community based in north Arkansas, claiming that Return to the Land's rejection of her application to buy land violated the Fair Housing Act and Civil Rights Act. (Arkansas Advocate)

🏘️ Fayetteville-based Specialized Real Estate Group is working on the second of five phases of the Markham Hill neighborhood. The phase includes 48 homes. (Northwest Arkansas Business Journal)

Get out this weekend.

😎 4th Friday Siloam — Siloam Springs is kicking off the summer with a block party with food trucks, live music and vendors. 3-8pm today at Memorial Park.

🎡 Carnival — The Rodeo of the Ozarks is hosting a carnival with rides and fair food today through May 31 at Parsons Stadium in Springdale. 5-10pm on weekdays and 5-11pm on weekends.

🛍️ Pop-up market — NWA Makers Market is hosting a pop-up with about 60 vendors from 10am-5pm Saturday at Pinnacle Hills Promenade in Rogers.

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