The Walton family took a big hit on Tuesday as they lost a combined $11.4 billion as Walmart’s (WMT) stock dropped over 7% amid the release of its updated earnings outlook.
Walmart announced on Tuesday that it was paring back its fiscal year 2023 earnings outlook for the second time as consumers cut back their spending on more expensive items amid rising inflation.
At the time, the retail giant said earnings per share would decline by as much as 13%.
“The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars,” Doug McMillon, Walmart president and CEO, said in a statement. “We’re now anticipating more pressure on general merchandise in the back half; however, we’re encouraged by the start we’re seeing on school supplies in Walmart U.S.”
Following the dim outlook, Walmart shares fell 7.6% in after-hours trading, Bloomberg reported.
The stock drop significantly cut into the Walton family’s wealth, as they own slightly under half of the company with a combined net worth of $199.3 billion, according to the Bloomberg Billionaires Index.
Today, founder Sam Walton’s three surviving children, Alice, Jim, Rob, own a stake in the company, along with daughter-in-law Christy and her son Lukas.
As of Wednesday afternoon, Alice had a net worth of $55.5 billion, with Jim’s value placed at $57.8 billion, while Rob’s wealth fell to $57.2 billion, according to the Bloomberg Billionaires Index. Christy and Lukas have a new net worth of $9 billion and $19.8 billion, respectively, the Index indicated.
The Walton family, who is the richest family in the world, also saw their wealth drop back in May, when Walmart’s share price tanked by as much as 11.4% – the biggest drop the Bentonville, Arkansas-based retailer has seen in one-day for nearly 35 years, Bloomberg said.
At the time, Chief Financial Officer Brett Biggs said a combination of inflation, higher fuel prices, oversized inventory, and overstaffing were causing financial challenges for Walmart, CNBC reported.
Briggs told the news outlet in May that the company was “off to a good start from a sales perspective.”
Walmart’s dismal sales outlook comes as the company said in May that it expected earnings per share to only drop by about 1%. In February, the company estimated a small increase in profits.
As of Wednesday at 12:32 p.m., shares of Walmart were trading at $125.11, up $3.13, or 2.57%.