Walmart Inc. posted strong revenue in the fourth quarter and raised its dividend but offered a cautious outlook for the year ahead.
Walmart delivered its Q4 earnings results on Tuesday, reporting a 7.3% increase in revenue and an 8.3% growth in in-house sales, furthering the retail giant’s market dominance as it sweeps market share away from competitors.
In addition to bringing in $164 billion in quarterly revenue, Walmart also posted admirable sales numbers in several of its sales channels, as well as raised its net income by 76% to $6.3 billion for the 13-week period ending January 27, 2023.
In terms of the retailer’s online sales, Walmart reported a 17% increase in e-commerce, according to the report. Walmart’s international sales accounted for $27.6 billion, which was an annual increase of 2.1%. The company noted in its report that currency fluctuations resulted in a $900 million hit to the retailer’s international sales figures.
Walmart’s global advertising business grew by more than 20% and was backed by a 41% boost from Walmart Connect in the U.S., the report said.
With inflation eating into American consumers’ bank accounts, budget-conscious shoppers have turned to Walmart for their discount groceries and supply needs, according to Walmart’s chief financial officer, John David Rainey.
“The consumer is still very pressured,” Rainey told CNBC. “If you look at economic indicators, balance sheets are running thinner and savings rates are declining relative to previous periods. And so that’s why we take a pretty cautious outlook on the rest of the year,” he said.
Despite the weaker-than-expected outlook, the company remains excited about the momentum it built during the third quarter, according to Doug McMillon, president and CEO of Walmart.
“The team delivered a strong quarter to finish the year, and as our results in the last two quarters show, they acted quickly and aggressively to address the inventory and cost challenges we faced last year,” said McMillon in the earnings report.
After building momentum in Q3 and Q4, Walmart is “well-positioned” to start the year, he added.
Walmart’s stock price (NYSE: WMT) on Tuesday ended the day up 0.61%, closing at $147.52. At close on Wednesday, shares had fallen 2.10% to $144.24.
