Walmart: Earnings exceeded expectations for the year as a whole

Earnings for the entire year of Walmart were higher than expected, signaling a steady demand in stores, as supply chain problems and inflationary pressures squeeze the retail giant’s profit margins.

While Walmart has raised prices on some products, it continues to influence competitors because of its scale and bargaining power with suppliers, helping it gain market share in key sectors such as grocery stores.

However, its focus on the “Low Daily” strategy has led to rising costs as it spends a lot to meet the challenges of the supply chain, speeding up shipments and chartering its own cargo ships.

The company stressed that it expects adjusted earnings per share for the year 2023, will increase 5% -6%, while analysts expected an increase of 4.4%.

WalMart’s net income for the quarter showed an unexpected increase of 0.5% to 152.87 billion dollars, exceeding analysts’ estimates for a fall of 0.4% to 151.53 billion dollars.

Sales in US stores rose 5.6%, excluding fuel, according to analysts.

However, the increase in online sales in the US increased by only 1% compared to the jump of 69% a year ago and the increase of 8% in the previous quarter.

Analysts expected a 10% increase in the quarter. The company also raised its annual dividend by 2% to $ 2.24 per share.

Source: Capital

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