Walmart (NYSE: WMT) reported better-than-expected quarterly earnings on Thursday, as shoppers steered towards retailers throughout the holiday season. The company says it is focused on value as customers become more cautious about rising inflation and presented a positive outlook for the year while increasing its dividend.
The Multinational retail corporation reported earnings of USD1.53 per share, compared to the expected USD1.50 a share. Revenue amounted to USD152.87 Billion, higher than analysts anticipated USD151.53 Billion. Additionally, Walmart posted a net income of USD3.56 Billion, a hefty increase from the previous year’s loss of USD2.09 Billion.
Walmart revealed that it is working to achieve its long-term financial goals, which entail adjusted earnings per share growth to be in the mid-single digits within the new fiscal year. This type of growth is considered above average analyst forecasts.
Nevertheless, shoppers are dealing with high levels of inflation for both food and general merchandise. According to Chief Financial Officer Brett Biggs, consumers expect the retailer to offer competitive prices, despite rising costs of meat and other items.
“We know that consumers are focused on inflation, and we’re continuing to watch key item pricing to ensure that we help them through this,” he said. “This type of environment plays to our strengths.”
Biggs added, “We haven’t seen any meaningful difference yet in how they’re shopping. We know consumers are focused on inflation, but we’re not seeing major changes in shopping patterns.” Stating that “Wages are up, unemployment, low. Consumer balance sheets are still in pretty good shape. So I think all of that helps customers.”
Walmart’s shares have fallen 9% throughout the past 12 months, and have a current market value of USD370.4 Billion.