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Walmart Reports Strong Q4 Revenue Growth But Saw Increased Costs

By John F. Heerdink, Jr.

Walmart Stores, Inc. (WMT) reported improved Q4 revenue driven by strong e-commerce growth that increased during the COVID-19 pandemic. However, there was an increase in costs due to a pay hike for its frontline workers. The retailer reported adjusted EPS of $1.39 versus $1.50 estimate, revenue stood at $152.1 billion versus $148.39 billion estimates. Walmart’s U.S. e-commerce sales increased 69%.

“Assumptions in the guidance are dependent upon the duration and intensity of the COVID-19 health crisis globally, timing and effectiveness of global vaccines, the scale and duration of economic stimulus, employment trends and consumer confidence,” Walmart noted.

During the fiscal 2021 year, Walmart reported total revenue of $559.2 billion, up by $35.2 billion, or 6.7% from a year ago. For the quarter ending January 31, the same-store sales figure came in at 8.6% in the U.S., versus estimates of 5% growth. Grocery sales reported high single-digit comparable, as stores increased their hours and witnessed better in-stocks. Food sales remained strong, while household chemicals and paper products continued to show growth. Walmart’s grocery pickup and delivery reported record-high sales volumes again in the quarter as customers shifted toward e-commerce.

The pharmacy saw its comparable sales growth in the mid-single digits, while general merchandise reported low double-digit growth, benefitted from customers looking for recreation across electronics, sporting goods, toys, and outdoor living.

In its fiscal 2022 full-year guidance, Walmart said it expects U.S. same-store sales, excluding gas, to grow in the low-single digits. It also expects consolidated net sales growth to be up in the low single-digits. Walmart announced pay increases for approximately 28% of its hourly store associates. The average U.S. wage is now above $15 per hour.

Walmart Stores, Inc. (WMT) is a worldwide retailer that operates in various formats. The three segments of the company include Walmart U.S., Walmart International, and Sam’s Club. The company is comprised of discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, cash and carry stores, home improvement stores, specialty electronics stores, apparel stores, drug stores, convenience stores, and membership-only warehouse clubs; and retail Websites. To learn more about Walmart (WMT) and to continue to track its progress please visit the Vista Partners Walmart Coverage Page

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives. 

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(Read Original Story: Walmart Q4 revenue soars, boosted by strength in web sales during COVID-19; stock drops in Yahoo Finance)


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