Walmart (WMT) shares have bounced back from earlier losses and are rising the biggest in the country bricked the retailer posted solid fiscal fourth-quarter 2023 results and raised its dividendbut issued weaker than expected knowledge because inflation affects consumer spending.
The company reported that profit rose 76.2% to $6.28 billion, or $1.71 per share. Revenue rose 7.3% to $164 billion. OUR comparable store sales increased by 8.3%. All three beat estimates.
Sales were affected by high prices, which led consumers to focus more of their dollars on necessities. Walmart noted that grocery sales jumped a high-teens percentage, and spending on drugstores and other health and wellness items increased by a low double-digit percentage. However, general merchandise sales fell by a mid-single-digit percentage.
Chief executive Doug McMillon said customers are “picky, choosy, thoughtful” and while they’re still spending money, it’s “obviously not clear” what the second half of the year will bring.
Dividend increase
So does the company he announced increased its annual dividend by $0.04 to $2.28 per share. It was the 50th year in a row that Walmart has raised its dividend.
Walmart said it expects fiscal 2024 first-quarter earnings per share (EPS) of $1.25 to $1.30 and full-year earnings per share of $5.90 to $6.05. Both missed analysts’ forecasts.
Walmart shares are up nearly 1% and are up 6% from a year ago.
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