Walmart Hiking Minimum Wage To $10/hour

(RTTNews) - Wal-Mart Stores Inc. (WMT), the world's largest retailer, said Thursday that it will hike the wages of about half a million full-time and part-time employees at its namesake U.S. stores and Sam's Clubs in the first half of the current fiscal year.

By April, all hourly Wal-Mart employees will earn at least $1.75 above today's federal minimum wage, or $9.00 an hour, and by February next year, all hourly Wal-Mart employees will earn at least $10.00 an hour, the Bentonville, Arkansas-based company said.

Wal-Mart said it will invest about $0.02 per share in the first quarter and about $0.20 per share for the full year 2015 in the new wage structure, comprehensive associate training and educational programs.

"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," said Doug McMillon, Wal-Mart president and CEO.

The announcement came as part of Wal-Mart's fourth quarter earnings release. The retail giant reported a 12% rise in fourth quarter profit, due mainly to increased traffic at its U.S. stores recorded during the holiday season. The company's adjusted earnings for the quarter beat analysts' expectations, while quarterly revenues fell short of estimates. However, the company forecast first quarter earnings below analysts' current consensus estimate and also lowered its revenue outlook for the current fiscal year.

Wal-Mart shares are currently trading at $83.83, down $2.46 or 2.85%. The shares trade in a 52-week range of $72.61 to $90.97.