Walmart navigated rising inflation and shifting consumer confidence in the fourth quarter, as sales rose and profits rose, beating analyst expectations.
The nation’s largest retailer on Thursday said its total revenue rose to $152.9 billion, up 0.5% from a year earlier, while operating income rose 7.3% to $5.9 billion.
The company reported earnings per share of $1.53, well above the $1.50 many analysts had expected.
The company’s CEO, Doug McMillon, said in a statement: “We had another strong quarter to end a strong year. “We have business momentum in all three segments. We are being active with our plans and following the strategy. “
The earnings report came a day after the Commerce Department reported that Retail sales up 3.8% in January from last month, a sign that the economy is resilient during the pandemic. The increase was attributed to greater consumer spending, but also partly to rapidly rising prices.
As the largest grocery chain in the country, WalmartTheir business is particularly vulnerable to inflationary, hit a four-decade high in the United States. The company, with more than 1.6 million people in the United States, has also raised wages competition for workers amid high sales in the retail industry during the pandemic.
In the quarter ended January 31, the company’s sales across its entire U.S. business grew 5.7% to about $105 billion, while gross profit margin increased slightly. When asked about inflation in a meeting with analysts, Walmart executives said the company was managing inflationary pressures, but did not go into detail about whether the cost increase would help. transferred to the customer or not.
Going forward, Walmart said on Thursday that it expects total sales growth of about 4% next year and that it will raise its annual dividend by 2% to $2.24 per share.
Walmart’s share price jumped 2.75% in pre-market trading.
https://www.nytimes.com/2022/02/17/business/walmart-earnings-4q-2021.html Post by Walmart Profits are higher as consumers keep spending