The Blubber

Walmart has announced a two-for-one stock split, offering additional shares to shareholders on record as of February 22. The additional shares are set to be distributed after the market closes on February 23, with the stock trading on a post-split basis from February 26. Walmart's decision to split shares is aimed at facilitating greater employee participation in its stock purchase plan. CEO Doug McMillon stated that the company sees this as an opportune time to encourage associates to engage in its stock program in the coming years. Walmart's shares experienced a 1% increase in after-hours trading.

Amid a successful year for the retail giant, where it outperformed many competitors, the stock split seeks to boost employee benefits and loyalty. As the largest U.S. grocer, Walmart demonstrated resilience against challenges impacting discretionary spending faced by its rivals. In the third quarter, Walmart reported sales of $160.80 billion, marking a 5% increase from the previous year. Earnings for the holiday quarter are scheduled to be reported next month. Although Walmart shares closed at $165.59 on Tuesday, just below the all-time high of $169.94 recorded in November, they have registered a 5% gain this year. This stock split is the company's 12th in its history, with the last one occurring in 1999. As part of its ongoing efforts to enhance employee benefits, Walmart recently announced increases in store manager wages and modifications to the bonus program, making managers eligible for bonuses of up to 200% of their base salary.