Walmart reported fourth quarter earnings of $4.24 billion (53 cents per share), with adjusted earnings of 74 cents per share – beating Wall Street’s forecasts.
Sales grew 5.6% to $190.7 billion, outperforming analyst expectations and driven especially by strong grocery sales and positive fashion results.
The big picture: Comparable sales, including online, rose 4.6% after a 4.5% increase in the previous quarter.
- U.S. e-commerce sales jumped 27% and accounted for 23% of the company’s total sales; global e-commerce grew 24%.
- Expedited deliveries (under three hours) accounted for 35% of store orders, helping to fuel sales momentum.
Driving the news: Walmart said it attracted a broader range of shoppers, including households earning over $100,000, but lower-income customers remain under financial strain.
- The quarter was Walmart’s first with John Furner as CEO, succeeding Doug McMillon, who led a period of robust growth and tech transformation.
Zoom out; The company became the first non-tech business to surpass a $1 trillion valuation, with shares rising over 25% since the last quarterly earnings report.
- While inflation pressures have eased slightly, consumer prices remain about 25% higher than five years ago, and tariffs continue to influence product costs and pricing.
- Walmart managed cost increases by adjusting inventory offerings and absorbing some price hikes; overall, average identical-item prices rose just above 1%.
What we’re watching: The outlook for the current quarter is cautious, with projected sales growth of 3.5% to 4.5% and earnings per share of 63 to 65 cents.
- For the full year, Walmart forecasts $706.4 billion in sales and $2.64 per share in earnings – below some Wall Street expectations.
