Walmart Continues to Dominate as Inflation Eases
The retail giant reported solid earnings for the crucial holiday period despite economic challenges. Revenue climbed nearly 6% to $173 billion as shoppers turned to Walmart for deals. “With general merchandise being more deflationary, we’ve got to sell more units because of lower prices overall,” said CFO John David Rainey.
Ad Business Gets Boost
In addition to retail dominance, Walmart made a big purchase to expand its digital offerings. The company announced a $2.3 billion acquisition of smart TV maker Vizio, gaining access to the popular SmartCast platform. This will allow Walmart suppliers to display ads directly on streaming devices in consumers’ homes. Over 18 million active accounts could be reached through the deal.
Overall earnings per share came in at $1.80 for the quarter, beating estimates. While sales grew at a healthy pace, the amount spent in each shopping trip dipped slightly as inflation eases. Walmart expects continued strength but slightly slower growth for the year ahead as price decreases reduce ticket sizes. The retail king is well-positioned to adapt in a fluctuating economy.
