Walmart (WMT) has reported a strong fourth quarter, with revenue increasing 5.3% to $182.6 billion and adjusted earnings per share rising 10% to $0.66. The retailer’s shares fell 8% in pre-market trading despite the positive results.
Same-store sales for Walmart US increased 4.6%, driven by higher-income shoppers seeking value and convenience. The company’s e-commerce business saw a 20% increase in sales, thanks to faster delivery times and its advertising platform. Subscription service Walmart+ also experienced double-digit growth.
The retailer’s US grocery business, which accounts for 60% of total sales, saw mid-single digit same-store sales growth, boosted by increased foot traffic and e-commerce. Discretionary items like toys, home decor, and fashion saw low single-digit growth in the holiday quarter.
For the full year, Walmart exceeded expectations with net sales increasing 5.6% to $684.2 billion. However, the company’s guidance for fiscal year 2025 is conservative, with expectations of a 4.8-5.1% increase in net sales.
Walmart CEO Doug McMillon attributed the momentum to low prices, growing assortment, and an e-commerce business driven by faster delivery times. The company is gaining market share, has a healthy top line, and is in “great shape with inventory.”
Investors are focusing on the outlook for 2025, rather than the recent results. Deutsche Bank analyst Krisztina Katai noted that the company’s guidance for fiscal year 2026 will likely be conservative, similar to previous years.
Source: https://finance.yahoo.com/news/walmart-posts-q4-profit-beat-as-it-gains-high-income-shoppers-but-guides-cautiously-for-2025-163516432.html