R&I – FS
Walmart’s shoppers look to be handling high levels of inflation in food and general merchandise relatively well.
“We haven’t seen any meaningful difference yet in how they’re shopping. We know consumers are focused on inflation, but we’re not seeing major changes in shopping patterns,” Walmart CFO Brett Biggs tells Yahoo Finance. “Wages are up, unemployment, low. Consumer balance sheets are still in pretty good shape. So I think all of that helps customers.”
Walmart (WMT) saw sales strength across the board to close out its year, led by its warehouse division Walmart. While inflation didn’t hold back shoppers, it did somewhat hold back profits.
The company said it saw $400 million in higher than expected supply chain costs. Biggs explained the increases mostly came in wages and transportation.
Here is how Walmart performed in the fourth quarter compared to Wall Street estimates:
- Total Revenue: $152.87 billion vs. $151.7 billion
- Walmart U.S. Same-Store Sales: +5.6% vs. +5.5%
- Sam’s Club U.S. Same-Store Sales: +10.4% vs. +9.8%
- Adjusted EPS: $1.53 vs. $1.51
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Article URL : https://finance.yahoo.com/news/walmart-cfo-on-inflation-consumers-are-still-shopping-131149335.html