Walmart Expects About 65% Of Its Stores To Be Automation Serviced By FY26

(RTTNews) - Walmart Inc (WMT) expects about 65% of its stores to be serviced by automation by the end of fiscal year 2026. The company affirmed fiscal year 2024 guidance and commitment to financial framework of 4% sales growth and 4%+ operating income growth over the next 3-5 years.

At 2023 Investment Community Meeting, the company said it expects approximately 55% of the fulfillment center volume will move through automated facilities, and unit cost averages could improve by approximately 20% by the end of fiscal year 2026.

"As the changes are implemented across the business, one of the outcomes is roles that require less physical labor but have a higher rate of pay," the company said.

Over time, the company anticipates increased throughput per person, due to the automation while maintaining or even increasing its number of associates as new roles are created.

The company reiterated its first quarter and fiscal year 2024 guidance.

Looking ahead to the first quarter, the company still expects adjusted earnings in a range of $1.25 to $1.30 per share on consolidated net sales growth of 4.5 to 5.0 percent in constant currency. Analysts polled by Thomson Reuters expect the company to report earnings of $1.30 per share on a revenue growth of 4.80 percent to $148.35 billion for the first quarter. Analysts' estimates typically exclude special items.

For fiscal 2024, the company still projects adjusted earnings in a range of $5.90 to $6.05 per share on consolidated net sales growth of 2.5 to 3.0 percent in constant currency. Wall Street currently is looking for fiscal year 2024 earnings of $6.12 per share on a revenue growth of 3.40 percent to $631.77 billion.