Daniel Case
One of the world's largest retailers, US chain Walmart, has announced its intention to raise salaries for its US employees after a successful financial year.
The COVID-19 pandemic, restrictive measures and the government's public assistance programme have helped the company to significantly improve its performance by boosting purchases at its shops. Walmart now intends to raise the salaries of its 425,000 employees in the US, with an average of $15 per hour, up by $1 from a year ago. The increase will affect employees in the online division and warehouses.
According to the company's report, in the fourth quarter of fiscal 2021, which ended on 29 January, comparable sales (in shops operating for at least 12 months) grew by 8.6% in the US, better than analysts' forecasts. Worldwide revenues for the period rose 7.3% to $152.1 billion. Overall, the company generated revenues of almost $560 billion in fiscal 2021, 6.7% better than last year's result.
However, the company invested heavily in online sales and diversification of its business during the pandemic, and was also forced to increase spending due to COVID-19 (for example, for increased employee benefits and financial aid packages). In the fourth quarter alone, such spending amounted to $1.1 billion.
As a result, Walmart missed analysts' forecasts for net income: it ended the quarter at $1.39 per share, while analysts had expected earnings of $1.51 per share. In addition, the company provided a forecast for fiscal year 2022, which was much more modest than analysts expected. As a result, the retailer's shares lost about 6% in NYSE trading.
source: bloomberg.com
The COVID-19 pandemic, restrictive measures and the government's public assistance programme have helped the company to significantly improve its performance by boosting purchases at its shops. Walmart now intends to raise the salaries of its 425,000 employees in the US, with an average of $15 per hour, up by $1 from a year ago. The increase will affect employees in the online division and warehouses.
According to the company's report, in the fourth quarter of fiscal 2021, which ended on 29 January, comparable sales (in shops operating for at least 12 months) grew by 8.6% in the US, better than analysts' forecasts. Worldwide revenues for the period rose 7.3% to $152.1 billion. Overall, the company generated revenues of almost $560 billion in fiscal 2021, 6.7% better than last year's result.
However, the company invested heavily in online sales and diversification of its business during the pandemic, and was also forced to increase spending due to COVID-19 (for example, for increased employee benefits and financial aid packages). In the fourth quarter alone, such spending amounted to $1.1 billion.
As a result, Walmart missed analysts' forecasts for net income: it ended the quarter at $1.39 per share, while analysts had expected earnings of $1.51 per share. In addition, the company provided a forecast for fiscal year 2022, which was much more modest than analysts expected. As a result, the retailer's shares lost about 6% in NYSE trading.
source: bloomberg.com
