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• The retailer said fourth quarter revenue exceeded $150 billion for the first time in two years
• Sales in January, the last month of the quarter, were its best on a two-year basis
Walmart Inc (WMT) reported better-than-expected results on Thursday, beating supply chain issues and rising inflation.
The world’s largest retailer also forecast higher overall earnings and sales for the year.
Walmart posted largest-ever holiday season sales and said fourth quarter revenue exceeded $150 billion for the first time since the start of the pandemic.
Sales in January, the last month of the quarter, were its best on a two-year basis, the company said.
In the quarter, overall U.S. comparable sales grew 5.6% and are expected to rise 3% in fiscal 2023, higher than analysts’ expectations.
Walmart shares rose 2.3% in morning trading.
Walmart said that since it sources over two-thirds of its products from the United States, it had an advantage over other businesses that were facing supply chain issues.
Beating rivals
Walmart saw higher grocery sales as it offered lower prices compared to its rivals, the company said. Of the total revenue of Walmart, 56% comes from grocery.
At the start of the quarter, supply-chain costs were quite high, with paid-leave costs increasing due to the Omicron variant.
The retailer was, though, able to post stellar results due to increased sales from apparel and its Walmart Connect advertising business.
Walmart Connect, launched in January 2021, sells digital ad space to consumer product companies and other advertisers. Walmart said it generated $2.1 billion in sales.
In the quarter, U.S. e-commerce sales grew just 1%, but were up 70% since the pandemic began.
U.S. Commerce Department data showed that consumer spending remained strong with highest U.S. retail sales in 10 months, despite higher product prices.
Picture Credits: Reuters