After Walmart shares fell 8% even as the company cut its profit forecast, the Walton family lost $11.4 billion on Tuesday. According to Forbes, the Waltons are the wealthiest family in America due to their stake in Walmart.
Walmart said higher food and fuel prices are prompting consumers to cut back on spending and it had to cut prices in its stores to reduce excess inventory. The retail giant also said its profits will decline due to rising inflation and its adjusted earnings per share will also drop 13% this year. Following that, its shares fell 7.6% in the United States, knocking the Walton family’s valuation down by $11.4 billion.
According to the Forbes website, approximately half of Walmart’s stock is owned by seven heirs of the late founders Sam Walton and his late brother James “Bud.” The heirs include Sam’s three living children – Rob, Jim and Alice – his stepdaughter Christy and son Lukas, as well as Bud’s two daughters, Ann and Nancy. Rob Walton served as chairman for more than two decades and remains on the board alongside current chairman Greg Penner, his son-in-law.
The family also owns Arvest Bank, which operates 16 banks in Arkansas, Oklahoma, Missouri and Kansas in the United States.
According to the Bloomberg Billionaires Index, Rob, Jim, Alice, Christy and Lukas have a combined net worth of approximately $199.3 billion, down about 11% since the first of the year.
According to a report by Bloomberg, the Walton family, which holds its stake in Walmart through various trusts, has accelerated its stock sales in recent years and last year sold about $6.2 billion worth of shares. shares. This, Walmart says, is part of a strategy to keep the family’s stake below 50% amid buyouts.
Along with Walmart, Canadian e-commerce company Shopify also saw a 14% drop on Tuesday after its CEO Tobi Lutke acknowledged that the company’s decision to grow rapidly as it emerges from the COVID-19 pandemic has not had not borne fruit. The company also said it plans to cut its workforce by around 10%.
Its stock drop hit Lutke’s net worth and wiped out $383 million, reducing the 41-year-old co-founder’s fortune to around $3.1 billion, according to the Bloomberg Index.
Walmart shares after falling 7.6% on Tuesday stood at $121.98 each, while Shopify’s certificate fell 14.06% on Tuesday to close at $31.55 each on the NYSE.
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