Walmart declares 3-for-1 stock split as shares remain below record high.

• Walmart announced a three-for-one stock split on Tuesday.
• Shareholders of record as of the previous day will receive the additional shares payable after the market closes on Feb. 23.
• On Tuesday, the stock price fell short of its all-time high of $169.94, which it reached in November, closing at $165.59.

The retailer declared a three-for-one stock split on Tuesday, with shares hovering just above their all-time high.

Shareholders of record as of the previous day will receive the additional shares payable after the market closes on Feb. 23, while Walmart's stock will begin trading on a post-split basis on Feb. 26.

Walmart announced that it decided to split its shares in order to make it easier for employees to participate in its stock purchase plan. CEO Doug McMillon stated that the company felt it was the right time to do so and that it hoped to encourage more associates to take part in the years to come.

Walmart shares rose about 1% in extended trading.

Despite the challenges faced by its competitors, the big-box retailer experienced growth in the previous year. Its success can be attributed to its size and ability to withstand pressures on discretionary spending.

In the third quarter, Walmart's sales rose to $160.80 billion, representing a roughly 5% increase from the previous year. The company intends to release its earnings for the holiday quarter in the upcoming month.

Although Walmart shares have increased by 5% this year, the stock closed Tuesday at $165.59, which is below the all-time high of $169.94 achieved in November.

In its history, the company has executed 11 two-for-one stock splits, with the most recent occurring in 1999.