Connect with us

Local News

Walmart income drops almost 25%



Little Rock, Arkansas — According to the retailer report, inflation in the supply chain, higher-than-expected inventory, and a 30% rise in wage costs helped derail Walmart’s first-quarter net income to 74 cents per share after a 56-cent downward adjustment from investments and divestitures losses.

The $1.30-per-share (GAAP) earnings missed estimates by 18 cents in the quarter. Net income attributable to Walmart was $2.054 billion, down 24.8% from $2.73 billion a year ago. Walmart’s gross margin narrowed to 23.8% versus consensus 24.2% in the quarter. Revenue in the quarter was $141.569 billion, up 2.4% from the same quarter in 2021.

“Across our businesses, we had a strong top-line quarter. We’re grateful to our associates for their hard work and creativity. Bottomline results were unexpected and reflect the unusual environment. U.S. inflation levels, particularly in food and fuel, created more pressure on margin mix and operating costs than we expected. We’re adjusting and will balance the needs of our customers for value with the need to deliver profit growth for our future.” Walmart CEO Doug McMillon said in his prepared remarks.

Stock traders were not impressed with the quarterly results or the lower operating income forecast Walmart made for the balance of this year, even as retailer’s revenue guidance increased to 4% on a constant currency basis. Walmart shares (NYSE: WMT) tumbled more than 8.61% to $135.55, down $12.76 in early trading on Tuesday.


Continue Reading

Leave a Reply

Your email address will not be published. Required fields are marked *