Story by Ehren Wynder • 1d •
A view of the Walmart Marketplace sign on display during the 2023 SEMA Show, at the Las Vegas Convention Center. The company on Tuesday announced it will ask many remote employees to relocate to Bentonville, Ark., where it is building a nearly 350-acre corporate campus, complete with 12 office buildings, fitness center, daycare and other amenities© by James Atoa/UPI
May 14 (UPI) -- Walmart said Tuesday it will layoff hundreds of corporate employees and relocate many others to its Arkansas headquarters.
In a memo sent to employees Tuesday, Chief People Officer Donna Morris said the decision was made to bring more remote workers back into the office since the COVID pandemic.
"We believe that being together, in person, makes us better and helps us to collaborate, innovate and move even faster," Morris said. "We also believe it helps strengthen our culture as well as grow and develop our associates."
The big-box retail chain is asking the majority of employees working remotely and at offices in in Dallas, Atlanta and Toronto to relocate to its corporate headquarters in Bentonville, Ark.
Some will have the option to relocate to offices in Hoboken, N.J., or the San Francisco Bay Area.
The company will allow corporate employees to work part-time remotely as long as they are in office for the majority of the work week.
"In addition, some parts of our business have made changes that will result in a reduction of several hundred campus roles," Morris said in the memo. "While the overall numbers are small in percentage, we are focused on supporting each of our associates affected by these changes."
Walmart officials said they already have spoken with affected employees and will "work closely with them in the coming days and months to navigate the best path forward." The company did not specify how many employees were affected.
In another cost-cutting measure, Walmart last month said it decided to shutter all 51 Walmart Health clinics in Arkansas, Florida, Georgia, Illinois and Texas.
The clinics, which offered doctor, dentist and therapy appointments, were part of a broad effort by Walmart in 2019 to offer a low-cost alternative in the health care industry, but the company decided to shutter the business after determining it was not financially sustainable.
Walmart's 4,600 pharmacies and over 3,000 vision centers will remain open.
Walmart said workers affected by the health center closures will be able to transfer to any other Walmart or Sam's Club store. Employees will be paid for 90 days unless they transfer to another store or leave the company.
While Walmart has made several operational cuts, it is investing in a nearly 350-acre corporate campus in Bentonville, which will includes 12 office buildings, a hotel, fitness center and daycare once complete.
WSJ: Walmart to lay off hundreds, tell many workers to move to Bentonville
Walmart supplier hiring over 1,000 PH factory workers
Walmart Posts Sales Growth, Raises Earnings Outlook for the Year
© Provided by Inquirer
MANILA, Philippines — Garment firm Welively Inc. is looking to hire at least a thousand workers for its factories in the Philippines, expanding its workforce by almost 50 percent, according to a local trade association of apparel exporters.
Foreign Buyers Association of the Philippines (Fobap) president Robert Young said that the company, which supplies garment goods to American retail chain Walmart Inc., is hiring for its factories in Clark, Pampanga, Cabuyao, Laguna, and Batangas.
“They are expanding and orders are coming in due to the United States and China conflict. Walmart is getting away from China and shifting its orders to other countries,” Young said in a phone interview with the Inquirer.
Young, whose trade group is buyers and exporters of garment and textile products, said that the company currently has 2,000 local employees.
READ: Garment exporters await better 2024
The company also exports about $200 million to $300 million worth of garment products annually to the United States.
The Fobap official said this would hopefully offset job cuts at other local garment makers, citing the loss of thousands of jobs at Luenthai Philippines, which manufactures apparel and other wearables for well-known international brands such as Ralph Lauren, Dillard’s, Adidas, Uniqlo, Victoria’s Secret, Coach and Michael Kors.
Absorbing the displaced
“[Welively] will now have the chance to hire all the displaced workers for the plants in Clark and Cabuyao,” Young said.
Young hopes that this positive development will allay concerns from overseas buyers that the garment sector will soon disappear.
READ: Garment exporters call for construction of textile mills
He also appealed to the government to ensure that its incentives scheme, particularly the provision of tax holidays for registered exporting companies, would be made clear for both local and foreign investors.
The Fobap official said some of their members were experiencing unwarranted audits from the Bureau of Internal Revenue (BIR), noting that some interactions were “bordering on extortion.”
“Our factory owners have told them that they are eligible for tax holidays. So why are these BIR officials persisting to bother us and [asking] us to pay back taxes?” he asked.
MANILA, Philippines — Garment firm Welively Inc. is looking to hire at least a thousand workers for its factories in the Philippines, expanding its workforce by almost 50 percent, according to a local trade association of apparel exporters.
Foreign Buyers Association of the Philippines (Fobap) president Robert Young said that the company, which supplies garment goods to American retail chain Walmart Inc., is hiring for its factories in Clark, Pampanga, Cabuyao, Laguna, and Batangas.
“They are expanding and orders are coming in due to the United States and China conflict. Walmart is getting away from China and shifting its orders to other countries,” Young said in a phone interview with the Inquirer.
Young, whose trade group is buyers and exporters of garment and textile products, said that the company currently has 2,000 local employees.
READ: Garment exporters await better 2024
The company also exports about $200 million to $300 million worth of garment products annually to the United States.
The Fobap official said this would hopefully offset job cuts at other local garment makers, citing the loss of thousands of jobs at Luenthai Philippines, which manufactures apparel and other wearables for well-known international brands such as Ralph Lauren, Dillard’s, Adidas, Uniqlo, Victoria’s Secret, Coach and Michael Kors.
Absorbing the displaced
“[Welively] will now have the chance to hire all the displaced workers for the plants in Clark and Cabuyao,” Young said.
Young hopes that this positive development will allay concerns from overseas buyers that the garment sector will soon disappear.
READ: Garment exporters call for construction of textile mills
He also appealed to the government to ensure that its incentives scheme, particularly the provision of tax holidays for registered exporting companies, would be made clear for both local and foreign investors.
The Fobap official said some of their members were experiencing unwarranted audits from the Bureau of Internal Revenue (BIR), noting that some interactions were “bordering on extortion.”
“Our factory owners have told them that they are eligible for tax holidays. So why are these BIR officials persisting to bother us and [asking] us to pay back taxes?” he asked.
INQ
Walmart's strong forecast sparks stock surge to record high
Updated Thu, May 16, 2024
By Ananya Mariam Rajesh and Siddharth Cavale
(Reuters) -Walmart raised its full-year forecast and reported better-than-expected quarterly results on Thursday, betting that easing inflation will drive stronger sales of groceries and non-essential merchandise like clothing and electronics, sending its shares to a record high in their biggest one-day gain in four years.
Some U.S. retailers in recent weeks have fanned concerns that consumer spending is waning, but behemoth Walmart is not one of them.
The largest U.S. retailer sounded uniformly positive in its outlook Thursday - sending shares up 7% to an all-time high of $64.22. The rally was the sharpest single-day gain for Walmart's stock since March 2020, and it helped lift the Dow industrials past 40,000 for the first time.
U.S. consumer prices rose less than expected in April, but domestic demand has shown signs of cooling as Americans struggle with higher rents, gas prices and car insurance premiums. In the 12 months through April, the consumer price index was up 3.4%, according to Bureau of Labor Statistics data released on Wednesday, though far below the 9.1% pace hit in June 2022.
"These are not inflation-driven results," Walmart CEO Doug McMillon said on a post-earnings call.
Results were driven by more visits to stores and the website by wealthier shoppers and the price gaps it is maintaining against rivals, McMillon said.
In Thursday's report, Walmart said total U.S. comparable sales rose 3.9%, excluding fuel, in its first quarter ended April 30. The average bill at the cash register was flat but the number of transactions rose. Analysts expected those sales to rise 3.15%, according to LSEG.
Online sales in the United States surged 22%, surpassing the 17% growth Walmart posted during the typically robust holiday season.
Growth was driven by Walmart's pickup & delivery services and increased sales of items like men's, women's and children's apparel through its third-party marketplace, which now offers more than 420 million items of mostly discretionary products. Walmart attributed much of the online gains to households earning more than $100,000 per year.
While Americans have generally managed to navigate through higher prices, prolonged inflation has sparked worries that lower-income consumers might be more pressured and potentially slow down an anticipated recovery in spending.
Walmart executives said that lower-income consumers maintained their spending habits in the quarter but tended to prioritize less-expensive items. They also noted that the price gap between eating at home and dining outside had increased, boosting its grocery business, which accounts for about 60% of total revenues.
A 45% increase in the number of food and consumables items it offered on discounts, which it calls rollbacks, in April resonated strongly with shoppers.
"As we continue to work closely with our suppliers to lower cost, we're managing our ... competitive price gaps and customers are responding favorably, resulting in sustained sales growth and higher gross margins," Walmart's finance chief John David Rainey said.
Gross margins rose about 0.4%, helped by newer business such as advertising and Walmart+ membership, Rainey said.
Telsey Advisory analyst Joseph Feldman said Walmart's strong results could bode poorly for the rest of retail as its performance indicates it is taking market share. Target reports results on May 22.
The retailer reported first-quarter adjusted earnings of 60 cents per share, easily beating the 52-cent average forecast. Total revenue of $161.51 billion also topped estimates.
For its fiscal year ending January 2025, Walmart expects sales to rise at the high end or slightly above its prior forecast of 3% to 4% growth, and adjusted profit per share to be at the high end or slightly above its prior estimate of $2.23 to $2.37.
(Reporting by Ananya Mariam Rajesh in Bengaluru and Siddharth Cavale in New YorkEditing by Nick Zieminski and Will Dunham)
Updated Thu, May 16, 2024
By Ananya Mariam Rajesh and Siddharth Cavale
(Reuters) -Walmart raised its full-year forecast and reported better-than-expected quarterly results on Thursday, betting that easing inflation will drive stronger sales of groceries and non-essential merchandise like clothing and electronics, sending its shares to a record high in their biggest one-day gain in four years.
Some U.S. retailers in recent weeks have fanned concerns that consumer spending is waning, but behemoth Walmart is not one of them.
The largest U.S. retailer sounded uniformly positive in its outlook Thursday - sending shares up 7% to an all-time high of $64.22. The rally was the sharpest single-day gain for Walmart's stock since March 2020, and it helped lift the Dow industrials past 40,000 for the first time.
U.S. consumer prices rose less than expected in April, but domestic demand has shown signs of cooling as Americans struggle with higher rents, gas prices and car insurance premiums. In the 12 months through April, the consumer price index was up 3.4%, according to Bureau of Labor Statistics data released on Wednesday, though far below the 9.1% pace hit in June 2022.
"These are not inflation-driven results," Walmart CEO Doug McMillon said on a post-earnings call.
Results were driven by more visits to stores and the website by wealthier shoppers and the price gaps it is maintaining against rivals, McMillon said.
In Thursday's report, Walmart said total U.S. comparable sales rose 3.9%, excluding fuel, in its first quarter ended April 30. The average bill at the cash register was flat but the number of transactions rose. Analysts expected those sales to rise 3.15%, according to LSEG.
Online sales in the United States surged 22%, surpassing the 17% growth Walmart posted during the typically robust holiday season.
Growth was driven by Walmart's pickup & delivery services and increased sales of items like men's, women's and children's apparel through its third-party marketplace, which now offers more than 420 million items of mostly discretionary products. Walmart attributed much of the online gains to households earning more than $100,000 per year.
While Americans have generally managed to navigate through higher prices, prolonged inflation has sparked worries that lower-income consumers might be more pressured and potentially slow down an anticipated recovery in spending.
Walmart executives said that lower-income consumers maintained their spending habits in the quarter but tended to prioritize less-expensive items. They also noted that the price gap between eating at home and dining outside had increased, boosting its grocery business, which accounts for about 60% of total revenues.
A 45% increase in the number of food and consumables items it offered on discounts, which it calls rollbacks, in April resonated strongly with shoppers.
"As we continue to work closely with our suppliers to lower cost, we're managing our ... competitive price gaps and customers are responding favorably, resulting in sustained sales growth and higher gross margins," Walmart's finance chief John David Rainey said.
Gross margins rose about 0.4%, helped by newer business such as advertising and Walmart+ membership, Rainey said.
Telsey Advisory analyst Joseph Feldman said Walmart's strong results could bode poorly for the rest of retail as its performance indicates it is taking market share. Target reports results on May 22.
The retailer reported first-quarter adjusted earnings of 60 cents per share, easily beating the 52-cent average forecast. Total revenue of $161.51 billion also topped estimates.
For its fiscal year ending January 2025, Walmart expects sales to rise at the high end or slightly above its prior forecast of 3% to 4% growth, and adjusted profit per share to be at the high end or slightly above its prior estimate of $2.23 to $2.37.
(Reporting by Ananya Mariam Rajesh in Bengaluru and Siddharth Cavale in New YorkEditing by Nick Zieminski and Will Dunham)
Walmart Posts Sales Growth, Raises Earnings Outlook for the Year
© Provided by The Wall Street Journal
Walmart’s sales continued to grow as American shoppers kept flocking to its stores for inexpensive everyday necessities.
U.S. comparable sales, or those from digital channels and stores operating at least 12 months, rose 3.8% in the quarter ended April 26. That was slower growth than last year, when comparatively higher prices sent sales soaring.
In the U.S., more people shopped at Walmart and bought more products, but the average amount spent per visit was flat compared with the same quarter last year. The retailer is gaining market share among higher-income households, a group it defines as households earning $100,000 or more a year, especially in grocery, executives said. The company raised its sales and profit expectations for the full year.
Walmart shares rose over 6% to $64 in morning trading. The company split its stock earlier this year.
“We are certainly a beneficiary of the overall economic environment where people are looking for value,” said Walmart Chief Financial Officer John David Rainey in an interview. At the same time, more shoppers are thinking about Walmart for convenience as well, he said. The company’s U.S. e-commerce sales grew 22% in the quarter, slightly higher growth than in previous quarters, driven by online orders fulfilled by stores in store parking lots or through home delivery.
Related video: Walmart beat quarterly earnings and revenue estimates (CNBC)
Duration 3:40 View on Watch
Bloomberg
Walmart’s sales continued to grow as American shoppers kept flocking to its stores for inexpensive everyday necessities.
U.S. comparable sales, or those from digital channels and stores operating at least 12 months, rose 3.8% in the quarter ended April 26. That was slower growth than last year, when comparatively higher prices sent sales soaring.
In the U.S., more people shopped at Walmart and bought more products, but the average amount spent per visit was flat compared with the same quarter last year. The retailer is gaining market share among higher-income households, a group it defines as households earning $100,000 or more a year, especially in grocery, executives said. The company raised its sales and profit expectations for the full year.
Walmart shares rose over 6% to $64 in morning trading. The company split its stock earlier this year.
“We are certainly a beneficiary of the overall economic environment where people are looking for value,” said Walmart Chief Financial Officer John David Rainey in an interview. At the same time, more shoppers are thinking about Walmart for convenience as well, he said. The company’s U.S. e-commerce sales grew 22% in the quarter, slightly higher growth than in previous quarters, driven by online orders fulfilled by stores in store parking lots or through home delivery.
Related video: Walmart beat quarterly earnings and revenue estimates (CNBC)
Duration 3:40 View on Watch
Bloomberg
1:52
CNBCCFRA:
CNBCCFRA:
Walmart is gaining significant market share in grocery and general merchandise
3:11
3:11
0:56
While retail prices remain high compared with a few years ago, they are cooling, Rainey said. “Pricing is kind of in check,” he said. Shoppers continue to spend cautiously on nonfood items, he said, and more are gravitating to store brand products. In addition, inventory is lean, all of which has helped push sales and profit higher.
“These are not inflation-driven results,” said Walmart Chief Executive Doug McMillon on a call with analysts Thursday. Shoppers are coming for more than low prices, said McMillon. “Whether the environment is inflationary or deflationary, whether customers have more money or less money, if we’re doing a good job on the items and prices and the service we provide,” the company will continue to grow, he said.
Walmart said one-third of the quarter’s revenue growth came from new sources of non-retail business such as advertising and data.
Walmart has grown steadily throughout the pandemic, first as shoppers rushed to stores in search of toilet paper and other basics, then as inflation sent shoppers looking for relative deals on groceries.
Some other retailers have struggled to increase sales without a pandemic boost. Earlier this week Home Depot said comparable sales fell 2.8% in the most recent quarter as high interest rates push customers to delay larger renovations and focus on smaller projects.
U.S. inflation eased slightly in April, the Labor Department said this week, following three months in which consumer prices rose more quickly than expected. Overall U.S. retail sales were flat last month, compared with the previous month. At Walmart, sales growth slowed slightly in April, said Rainey, as the Easter holiday fell earlier in March this year and weather hurt sales. So far, May sales are in line with the most recent quarter overall, he said.
Walmart executives have been focused on increasing spending beyond groceries and everyday necessities to grow. In addition, earlier this year Walmart said it has plans to build new stores, its first major store expansion in nearly a decade. It also reached a $2.3 billion deal to buy television maker Vizio, a major bet to make ad sales a new revenue source. And last month Walmart launched a line of premium foods in a bid to draw new shoppers and encourage current customers to spend more.
Walmart’s net income hit $5.1 billion in the quarter, up from $1.67 billion in the same period last year, including equity investments. Walmart is cutting costs in some areas. This week Walmart told workers it would cut hundreds of corporate jobs and ask most remote workers to move to offices. Last month Walmart said it would close all 51 of the health clinics it has opened over the past five years.
Walmart said full-year net sales are likely to come in at the high end or slightly above its previously expected range of a 3% to 4% increase. Operating income will also likely hit the high end or slightly above its previously expected range of a 4% to 6% increase, the company said Thursday.
Write to Sarah Nassauer at Sarah.Nassauer@wsj.com
While retail prices remain high compared with a few years ago, they are cooling, Rainey said. “Pricing is kind of in check,” he said. Shoppers continue to spend cautiously on nonfood items, he said, and more are gravitating to store brand products. In addition, inventory is lean, all of which has helped push sales and profit higher.
“These are not inflation-driven results,” said Walmart Chief Executive Doug McMillon on a call with analysts Thursday. Shoppers are coming for more than low prices, said McMillon. “Whether the environment is inflationary or deflationary, whether customers have more money or less money, if we’re doing a good job on the items and prices and the service we provide,” the company will continue to grow, he said.
Walmart said one-third of the quarter’s revenue growth came from new sources of non-retail business such as advertising and data.
Walmart has grown steadily throughout the pandemic, first as shoppers rushed to stores in search of toilet paper and other basics, then as inflation sent shoppers looking for relative deals on groceries.
Some other retailers have struggled to increase sales without a pandemic boost. Earlier this week Home Depot said comparable sales fell 2.8% in the most recent quarter as high interest rates push customers to delay larger renovations and focus on smaller projects.
U.S. inflation eased slightly in April, the Labor Department said this week, following three months in which consumer prices rose more quickly than expected. Overall U.S. retail sales were flat last month, compared with the previous month. At Walmart, sales growth slowed slightly in April, said Rainey, as the Easter holiday fell earlier in March this year and weather hurt sales. So far, May sales are in line with the most recent quarter overall, he said.
Walmart executives have been focused on increasing spending beyond groceries and everyday necessities to grow. In addition, earlier this year Walmart said it has plans to build new stores, its first major store expansion in nearly a decade. It also reached a $2.3 billion deal to buy television maker Vizio, a major bet to make ad sales a new revenue source. And last month Walmart launched a line of premium foods in a bid to draw new shoppers and encourage current customers to spend more.
Walmart’s net income hit $5.1 billion in the quarter, up from $1.67 billion in the same period last year, including equity investments. Walmart is cutting costs in some areas. This week Walmart told workers it would cut hundreds of corporate jobs and ask most remote workers to move to offices. Last month Walmart said it would close all 51 of the health clinics it has opened over the past five years.
Walmart said full-year net sales are likely to come in at the high end or slightly above its previously expected range of a 3% to 4% increase. Operating income will also likely hit the high end or slightly above its previously expected range of a 4% to 6% increase, the company said Thursday.
Write to Sarah Nassauer at Sarah.Nassauer@wsj.com
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