Walmart forecasts disappointing 2022 sales estimates; shares fall | ABS-CBN

ADVERTISEMENT

dpo-dps-seal
Welcome, Kapamilya! We use cookies to improve your browsing experience. Continuing to use this site means you agree to our use of cookies. Tell me more!

Walmart forecasts disappointing 2022 sales estimates; shares fall

Walmart forecasts disappointing 2022 sales estimates; shares fall

Aishwarya Venugopal and Richa Naidu,

Reuters

Clipboard

The exterior of a Walmart department store is pictured where the Moderna coronavirus disease (COVID-19) vaccine is available as Walmart and other major U.S. pharmacies take part in the Federal Retail Pharmacy Program, to increase vaccinations in the U.S. in West Haven, Connecticut, US, February 17, 2021. Mike Segar, Reuters


Walmart Inc on Thursday forecast slowing sales for fiscal 2022, following a blockbuster year that saw demand for essentials and other items soar as consumers flocked to the retailer during lockdowns linked to the coronavirus pandemic.

The world’s biggest retailer forecast adjusted net sales to grow in the low single digits in fiscal 2022 which ends Jan. 31, much lower than the 8.5 percent growth seen in the preceding year. It also expects earnings per share to be flat-to-slightly up, below the 2.2 percent growth analysts had been expecting, according to Refinitiv.

Shares were down 4 percent in premarket trading after Walmart also said it took on about $1.1 billion in pandemic-related costs during the quarter, including higher wages for warehouse workers, bonuses for store employees and costs related to keeping its stores clean.

Walmart, which employs 1.5 million people in the United States, said it was raising wages to more than $15 per hour on average.

ADVERTISEMENT

An early start to the holiday season and a boost from stimulus money late in the fourth quarter drove demand for electronics, toys and groceries.

Sales at US stores open at least a year surged 8.6 percent, excluding fuel, in the three months ended Jan. 31, well above analysts’ expectations for a 5.6 percent rise, according to IBES data from Refinitiv.

“The guidance that we’re going to give this morning really doesn’t include any material stimulus because we just don’t know what will happen. If we get more stimulus certainly that’s a tailwind for us,” Chief Financial Officer Brett Biggs told Reuters in an interview.

Online sales rose 69 percent in the quarter, blowing past a 35 percent increase in the year-earlier period, but slower than a 79 percent surge in the third quarter.

The retailer has relied on its scale and strengthening online presence during the pandemic to attract new customers looking for a one-stop shop for their daily needs.

Operating income rose 3.1 percent to $5.49 billion in the quarter, while adjusted earnings were $1.39 per share. Analysts on average were expecting the company to earn $1.51 per share.


ADVERTISEMENT

ADVERTISEMENT

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

It looks like you’re using an ad blocker

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker on our website.

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker on our website.