American multinational retail corporation, Walmart Inc has come up with surprising performance in its fourth quarter on Thursday, indicating persistent demand at stores despite supply-chain problems during the holiday season and teeming cost inflation menacing the retail giant’s margins.
Walmart’s net revenue grew to 0.5 per cent in the fourth quarter to $152.87 billion, exceeding analysts average estimate of $151.53 billion, or a 0.4% fall. The company modified earnings per share grew from 5% to 6%, while analysts had expected a 4.4% increase in fiscal 2023, according to Refinitiv data.
Comparative U.S. sales, those from stores and digital channels functioning for at least 12 months excluding fuel sales, grew 5.6% in the quarter ended Jan 28, corresponding with the same period a year earlier.
Walmart formerly said it has been asking suppliers to decrease the MRP to grab market share, US chief executive John Furner said in November. In Thursday’s release, the company stated that “competitive pricing remains in focus globally.”
Nonetheless, online sales growth in the United States stood merely 1%, corresponding with a 69% surge a year earlier and 8% in the earlier quarter. The company also boosted its annual dividend by 2% to $2.24 per share. Technology investments made by Walmart allowed the company to remain relevant and profitable despite increased competition from e-retailers.
