The Walton family, the richest family in the world, saw a $11.4 billion decline in total worth on Tuesday as a result of Walmart Inc. cutting its earnings projection for the second time this year.
Shares of the family-owned retailer with headquarters in Bentonville, Arkansas, dropped 7.6 per cent in New York trade after it predicted that this year's adjusted earnings per share may fall as much as 13 per cent as US consumers cut back on big-ticket purchases due to rising consumer costs. In February, the business expected a slight gain in earnings per share, but two months ago it predicted a slight decline of only about 1 per cent.
Sam Walton, the late patriarch of the family, founded the company with a focus on discounts, which has in the past supported its shares through economic downturns. Walmart noted the expense of lowering product stockpiles that customers were becoming less willing to purchase as inflation approaches a four-decade high in adjusting its outlook.
Just under half of the retailer is owned by Alice, Jim, Rob, Christy, the daughter-in-law of Rob Walton, and Lukas, the son of Christy. According to the Bloomberg Billionaires Index, this gives them a total net worth of around $199.3 billion, down over 11 per cent since the start of the year.
Not just Walmart, but other retailers also saw their shares fall. Shopify Inc., a Canadian e-commerce business, dropped 14 per cent on Tuesday after admitting that the plan to grow quickly after the Covid-19 pandemic had not been successful. As a result, the company announced that it will reduce its personnel by 10 per cent.
According to the Bloomberg index, Tuesday's loss reduced Lutke's net worth by $383 million, bringing the 41-year-old co-wealth founder's to approximately $3.1 billion. Shares of Ottawa-based Shopify have fallen 77 per cent so far this year.
The Walton family has increased its stock sales in recent years. The Walton family owns its interest in Walmart through numerous trusts.
They sold $6.2 billion worth of shares last year, according to the firm, as part of a plan to keep the family's ownership below 50% while buybacks are taking place.
They now have plenty of money for acquisitions thanks to those sales as well as outside investments in US stocks and inexpensive exchange-traded funds. The Denver Broncos of the NFL will be purchased by a company headed by Rob Walton for a record $4.65 billion. The National Football League's financial committee and league ownership still need to approve the arrangement, which was disclosed in June.
(Source:www.business-standard.com)
Shares of the family-owned retailer with headquarters in Bentonville, Arkansas, dropped 7.6 per cent in New York trade after it predicted that this year's adjusted earnings per share may fall as much as 13 per cent as US consumers cut back on big-ticket purchases due to rising consumer costs. In February, the business expected a slight gain in earnings per share, but two months ago it predicted a slight decline of only about 1 per cent.
Sam Walton, the late patriarch of the family, founded the company with a focus on discounts, which has in the past supported its shares through economic downturns. Walmart noted the expense of lowering product stockpiles that customers were becoming less willing to purchase as inflation approaches a four-decade high in adjusting its outlook.
Just under half of the retailer is owned by Alice, Jim, Rob, Christy, the daughter-in-law of Rob Walton, and Lukas, the son of Christy. According to the Bloomberg Billionaires Index, this gives them a total net worth of around $199.3 billion, down over 11 per cent since the start of the year.
Not just Walmart, but other retailers also saw their shares fall. Shopify Inc., a Canadian e-commerce business, dropped 14 per cent on Tuesday after admitting that the plan to grow quickly after the Covid-19 pandemic had not been successful. As a result, the company announced that it will reduce its personnel by 10 per cent.
According to the Bloomberg index, Tuesday's loss reduced Lutke's net worth by $383 million, bringing the 41-year-old co-wealth founder's to approximately $3.1 billion. Shares of Ottawa-based Shopify have fallen 77 per cent so far this year.
The Walton family has increased its stock sales in recent years. The Walton family owns its interest in Walmart through numerous trusts.
They sold $6.2 billion worth of shares last year, according to the firm, as part of a plan to keep the family's ownership below 50% while buybacks are taking place.
They now have plenty of money for acquisitions thanks to those sales as well as outside investments in US stocks and inexpensive exchange-traded funds. The Denver Broncos of the NFL will be purchased by a company headed by Rob Walton for a record $4.65 billion. The National Football League's financial committee and league ownership still need to approve the arrangement, which was disclosed in June.
(Source:www.business-standard.com)
