Walmart Posts Q4 and Full-Year Results

• Revenue growth of 5.6%, up 4.9% in constant currency (cc)1
• Operating income growing faster at 10.8%, up 10.5% adjusted (cc)1
• eCommerce sales up 24% globally
• GAAP EPS of $0.53; Adjusted EPS1 of $0.74
• Company announces new $30 billion share repurchase authorization
• Company provides outlook for Q1 and FY27

Walmart Inc. (NASDAQ: WMT) announces fourth-quarter results with strong growth in revenue and adjusted operating income. Globally, eCommerce grew 24% with strength across segments. Walmart U.S. comp sales2 grew 4.6%. Looking ahead, the Company issues guidance for FY27 with net sales expected to grow 3.5% to 4.5% and adjusted operating income to grow 6.0% to 8.0%, both in constant currency (“cc”)1. Adjusted EPS1 is expected to be $2.75 to $2.85.

Fourth Quarter Highlights

• Revenue of $190.7 billion, up 5.6%, or 4.9% (cc)1 
• Global eCommerce sales grew 24%, led by storefulfilled pickup & delivery and marketplace
• Global advertising business3 up 37%, including VIZIO; Walmart Connect in the U.S. up 41%
• Membership fee revenue grew 15.1% globally
• Gross margin rate up 13 bps, led by Walmart U.S.
• Operating income up $0.8 billion, or 10.8%; up 10.5% adjusted (cc)1, growing faster than sales
• Adjusted EPS1 of $0.74 excludes the impact, net of tax, from a net loss of $0.21 on equity and other investments

Full Year Highlights

• Revenue of $713.2 billion, up 4.7%, or 5.1% (cc)1
• Operating income up $0.5 billion or 1.6%; up 5.4% adjusted (cc)1, growing faster than sales
• Global advertising business3 grew 46% to nearly $6.4 billion, including VIZIO
• ROA at 8.2%; ROI at 15.1%1, negatively affected ~35 bps from discrete items4
• Global inventory up 4.3%; up 2.6% (cc)5
• Increased annual dividend to $0.99 per share

Balance Sheet and Liquidity

• Cash and cash equivalents of $10.7 billion
• Total debt of $51.5 billion2
• Operating cash flow of $41.6 billion, an increase of $5.1 billion
• Free cash flow1 of $14.9 billion, an increase of $2.3 billion
• Repurchased 85.0 million shares YTD, or $8.1 billion3
• Inventory of $58.9 billion, an increase of $2.4 billion, or 4.3%

Walmart U.S.

• Sales momentum continued with growth in customer transactions led by digital, with broad-based share gains
  ◦ Customers responding favorably to our omni strategy of low prices and increased convenience 
  
  
• eCommerce sales up 27%, with strength in store-fulfilled pickup & delivery, advertising and marketplace ◦ Sales through expedited store-fulfilled delivery channels grew more than 50% 
  
  
• Strong advertising growth continued, including 41% increase in Walmart Connect sales (ex-VIZIO)
  
  
• Gross profit rate increased 17 bps; membership fee revenue grew double-digits; operating expense leveraged 2 bps
  
  
• Operating income grew faster than sales, up 6.6%, reflecting higher gross margins with strong inventory management, expense leverage, and improved eCommerce economics, aided by ongoing improvement in business mix
  
  
• Inventory increased 2.9% with healthy in-stock levels

Walmart International

• Growth in net sales (cc)1 led by China, Walmex, and Flipkart, with strong momentum from both stores and eCommerce
  ◦ Transaction counts and unit volumes up across markets, and growth across all categories
  
  
• eCommerce sales up 17% in Q4, led by store-fulfilled pickup & delivery; digital mix up across markets
  
  
• Q4 advertising business3 grew 10%, with full year increasing 19%
  
  
• Timing of Flipkart’s Big Billion Days4 (“BBD”) negatively affected growth in Q4, with a corresponding benefit in Q3
  
  
• Operating income growth (cc)1 driven by lower losses in eCommerce and lapping last year’s strategic investments

Source : Walmart

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