Walmart announced $485.7 billion in revenues for fiscal 2015. Walmart will use some of the profits and invest in its work force.
Walmart is criticized for its low wages and since years. In today's Q4 earnings announcement Walmart revealed a program to increase asscoiate wages. Wallmat said today that about 500,000 full-time and part-time associates at Walmart U.S. stores and Sam's Clubs will receive pay raises in the first half of the current fiscal year.
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Current and future associates will benefit from this initiative, which ensures that Walmart hourly associates earn at least $1.75 above today's federal minimum wage, or $9.00 per hour, in April. The following year, by Feb. 1, 2016, current associates will earn at least $10.00 per hour.
Today, we announced comprehensive changes to our hiring, training, compensation and scheduling programs, as well as to our store management structure. These changes will give our U.S. associates the opportunity to earn higher pay and advance in their careers. We're pursuing a comprehensive approach that is sustainable over the long term," explained Walmart President and CEO Doug McMillon. "By realigning our store operational structure, associates can enjoy a closer relationship with their supervisors. In addition, associates will have more control over their schedules. The investment in these initiatives is more than $1 billion for this fiscal year."
Walmart and the Walmart Foundation also committed $100 million over five years to help increase the economic mobility for entry level workers by advancing their careers.
"Beyond this commitment, Walmart is also piloting a new, comprehensive on-boarding and training program to create clear career pathways for associates, so they can earn more and seek promotions," McMillon explained. "We're encouraging our associates to continue their education by providing no-cost access for them to complete their high school diploma or GED, as well as free and low-cost college credit to reduce the time and cost of earning a college degree. The skills and training that an associate receives through this program will be transferable outside of Walmart."
If this initiative will be enough to satisfy the Walmart workers that strike each year at Black Friday remains to be seen. It likely depends how effective this program is in providing workers with a salary that is enough to live on.
The giant retailer had a positive Q4 with net sales of $130.7 billion, an increase of 1.4% over last year. Consolidated net sales for the year were $482.2 billion, an increase of 1.9 percent over fiscal year 2014. The numbers got negatively impacted by currency exchange rate fluctuations, but still look decent. Total revenue for fiscal 2015 was $485.7 billion, an increase of approximately $9.4 billion, or 2%.
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Via the Walmart Q4 Earnings report.