CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
WMT announced a 3:1 stock split (effective February 26). While stock splits are purely cosmetic (i.e., no impact to fundamentals), they are perceived as a shareholder-friendly move and a sign of confidence. In separate news releases, WMT announced increases to store manager pay (from $117K/year to $128K/year, with bonuses up to 200% of base salary) and plans to build or convert more than 150 stores over the next five years. WMT will continue to remodel stores (650 store remodels planned over the next year) to its Store of the Future concept (i.e., improved layouts, expanded product selection, and innovative technology). We visited a few remodeled stores and were particularly grabbed by the new displays and features, wider aisles, and brighter lighting. Store remodels should help drive traffic/volume growth in CY 2024 and help offset waning average ticket growth. With consumer prices stabilizing and even coming down in certain categories, it will be up to traffic/volumes to drive revenue growth in CY 2024.