Wal-Mart Stores, Inc. (WMT – Analyst Report) reported its fiscal first-quarter results Thursday morning, effectively capping off what has been a busy earnings season in the retail sector. While Wal-Mart and online giant Amazon.com, Inc. (AMZN –Analyst Report) have shown strength, their competitors seem to be lagging behind.

Wal-Mart was able to beat both earnings and revenue expectations. The company reported first quarter earnings of 98 cents, cruising past the Zacks Consensus Estimate of 88 cents. Quarterly revenues came in at $115.9 billion versus our consensus estimate of $112.7 billion.

In a retail environment where many are struggling to even get customers in the door, Wal-Mart faced different challenges. Currency fluctuations cost the company $3.5 billion in the quarter, and increased investments in e-commerce combined with higher wages put a dent in its operating income.

Operating income was down 7.1% year-over-year to $5.28 billion. On a constant currency basis, operating income declined 4.6%. On a more positive note, Wal-Mart’s investment in e-commerce is paying off. Total sales in the segment were up 7% on a constant currency basis.

Similarly, Amazon crushed estimates as well. Amazon posted first-quarter earnings of $1.01 per share, which absolutely trounced the Zacks Consensus Estimate of $0.61 per share. Quarterly revenues of $29.128 billion also beat our consensus estimate of $27.943 billion.

Operating income of $1.071 billion was up from just $255 million in the year-ago quarter. Amazon’s recent profits have been boosted by incredible growth in its Amazon Web Services segment. AWS accounted for over $2.5 billion in revenue this quarter, up from $1.5 billion last year. It is interesting to note that Amazon’s fast growing segment is outside of the typical retail landscape.

The struggles of the rest of the retail segment is best exemplified by Macy’s, Inc. (M – Analyst Report), which missed revenue estimates by over 3%, and Target, Inc. (TGT – Analyst Report), which also saw slumping revenue. Following their earnings announcements, Macy’s and Target fell about 8% and 15%, respectively.