Walmart raises expectations despite opioid settlement hit on earnings

By Al Mayadeen English
Source: Agencies
16 Nov 2022 00:08
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Walmart's total revenue raked up $152.8 billion, up 8.7% from a year ago.

Walmart is winning big despite claims that it had a hand in the US opioid crisis.

Walmart saw its earnings top expectations in the third quarter as consumers seek bargains amid crippling inflation - however, its numbers took the burden of a US opioid crisis.

The US retailer noted that it continued to gain market share in the grocery sector, raising its full-year outlook on strong results despite the economic and political ambiance in the US which has affected millions.

Walmart's total revenue raked up $152.8 billion, up 8.7% from a year ago - a number which was better than they'd predicted. The company is expecting that its full-year adjusted profit will be declining between 6.5% and 7.5%, which is still an improvement in relevance to previous predictions.

However, those numbers were weakened by a settlement resolving allegations that Walmart had contributed to the opioid crisis in the US by failing to control prescription purchases.

The opioid crisis in the US has caused over 500,000 deaths in over 20 years, also triggering a series of lawsuits against drugmakers and pharmacies.

While Walmart will be paying up to a good $3.2 billion to resolve opioid cases, CVS Health and Walgreens will also be paying up $10 billion this month in preliminary agreements to resolve such claims.

Walmart previously stressed that it "strongly disputes" the allegations; in contrast, it believes that the money would help communities tackle the crisis.