Financial Performance - Total revenues for fiscal 2024 were 648.1billion,withnetsalesof642.6 billion[15] - Net sales for fiscal 2024 were 642.637billion,a6.116.3 billion, an increase of 5.0billioncomparedtothepreviousyear[135]−Effectiveincometaxrateforfiscal2024was25.536.8 billion or 6.0% in fiscal 2024 compared to the previous year, driven by positive comparable sales in Walmart U.S. and Sam's Club segments[134] - Consolidated net income attributable to Walmart was 15.511billioninfiscal2024,upfrom11.680 billion in 2023[188] - Basic net income per common share attributable to Walmart was 1.92infiscal2024,comparedto1.43 in 2023[188] - Consolidated net income for fiscal year 2024 is 16,270million,comparedto11,292 million in 2023 and 13,940millionin2022[190]−ComprehensiveincomeattributabletoWalmartforfiscalyear2024is15,889 million, compared to 10,028millionin2023and16,673 million in 2022[190] - Consolidated net income for fiscal 2024 was 16.27billion,upfrom11.29 billion in fiscal 2023[196] Segment Performance - Walmart U.S. segment generated 441.8billioninnetsalesforfiscal2024,representing69114.6 billion for fiscal 2024, accounting for 18% of consolidated net sales[27] - Sam's Club achieved net sales of 86.2billioninfiscal2024,representing1321.3 billion or 5.1% in fiscal 2024, with comparable sales growth of 5.5%[136] - Walmart International segment net sales increased by 13.7billionor13.53.0 billion[138] - Operating income for Walmart U.S. segment increased by 1.5billioninfiscal2024,reaching22.154 billion[136] - Walmart International segment operating income increased by 1.9billioninfiscal2024,reaching4.909 billion[138] - Sam's Club segment net sales increased by 1.8billion(2.210.8 billion (14.7%) in fiscal 2023 compared to the previous fiscal year[139] - Membership and other income increased by 7.5% in fiscal 2024 and 7.0% in fiscal 2023 compared to the previous fiscal year[140] E-commerce and Omni-channel - Walmart U.S. has over 4,300 locations offering same-day delivery as of January 31, 2024[20] - Walmart International operates in 18 countries with over 2,800 pickup and 2,900 delivery locations as of January 31, 2024[28] - Walmart U.S. offers an omni-channel experience with services like pickup, delivery, and Walmart+ membership[20] - Walmart International expanded its marketplace offerings and digital payment platform in India[28] - Walmart U.S. eCommerce sales contributed approximately 2.6% to comparable sales in fiscal 2024, primarily driven by store pickup and delivery[123] - Sam's Club comparable sales increased by 2.3% in fiscal 2024 and 14.6% in fiscal 2023, with eCommerce sales contributing 1.7% and 0.8% respectively[123] - Walmart U.S. eCommerce sales contributed approximately 2.6% to comparable sales in fiscal 2024, driven by store pickup and delivery[136] - Sam's Club eCommerce sales contributed 1.7% and 0.8% to comparable sales in fiscal 2024 and 2023, respectively[139] Supply Chain and Distribution - Walmart U.S. operates 162 distribution facilities strategically located throughout the U.S.[25] - Walmart International utilizes 176 distribution facilities across Canada, Central America, Chile, China, India, Mexico, and Africa[32] - Sam's Club operates with an average warehouse facility size of approximately 134,000 square feet[35] - Sam's Club utilizes 30 dedicated distribution facilities in the U.S. and ships merchandise from 15 dedicated eCommerce fulfillment centers[39] - Investments in supply chain automation to support omni-channel strategy[70] - Total capital expenditures rose to 20.6billionin2024from16.9 billion in 2023, driven by supply chain and technology investments[130] - Capital expenditures for fiscal 2025 are projected to be approximately 20billionto24 billion[146] Workforce and Training - Walmart employs approximately 2.1 million associates globally, with 1.6 million in the U.S. and 0.5 million internationally[44] - Approximately 75% of U.S. salaried store, club, and supply chain management started in hourly positions[46] - Company offers competitive wages, 401(k) match, paid parental leave, and mental health services in the U.S.[46] - Walmart Academy and Live Better U (LBU) provide training and educational opportunities for associates[46] - Digital transformation focuses on improving associate productivity and efficiency, expanded to international markets[46] - App developed to capture real-time associate feedback and support virtual medical visits in the U.S.[47] - Increased competition for talent could result in higher associate costs or difficulty in recruitment and retention[76] Environmental and Social Goals - Walmart aims to achieve zero emissions in its operations by 2040 and reduce one billion metric tons of emissions in its value chain by 2030[43] Risks and Challenges - Strategic investments in eCommerce, technology, and supply chain automation may impact financial performance[53] - Increasing online grocery sales could reduce in-store traffic and cross-store sales opportunities[53] - Failure to predict consumer trends may lead to lower sales, spoilage, and inventory markdowns[54] - Strong competition from omni-channel retailers and eCommerce platforms could affect financial performance[56] - Macro-economic factors domestically and internationally may adversely impact financial performance[57] - Higher interest rates and increased costs of essential services could adversely affect consumer demand and net sales[58] - Strategic alliances like the fintech venture ONE and healthcare initiative with UnitedHealth Group may not meet expected profitability[60] - Global health pandemics like COVID-19 could disrupt supply chains and negatively impact financial performance[61] - Natural disasters and geopolitical events could lead to physical damage and operational disruptions[62] - Climate change could increase operational costs and disrupt supply chains due to extreme weather conditions[63] - Supplier compliance issues and global sourcing challenges could adversely affect financial performance[64] - Product quality and safety failures could lead to customer loss and liability claims[65] - Third-party marketplace transactions could expose the company to regulatory and reputational risks[67] - Disruptions in information and financial systems could harm business operations[68] - Technology-based systems failures could adversely affect omni-channel business growth[69] - Reliance on third-party service providers for technology systems and services[70] - Cybersecurity incidents could result in loss of sales and reputational damage[70] - Increased use of remote work infrastructure has expanded potential attack surfaces[70] - Digital platforms and systems are regularly subject to cyberattacks[70] - Compliance with payment card industry data security standards is critical[73] - Retail pharmacy operations are heavily dependent on third-party reimbursements[74] - Walmart Health clinical operations face risks from changes in reimbursement rates[75] - Potential disruptions in pharmaceutical supply could severely affect pharmacy operations[74] - Cybersecurity incidents could lead to regulatory actions and legal liabilities[73] - Fluctuations in foreign exchange rates have adversely affected the reported performance of Walmart International operating segment[79] - The OECD's Pillar Two initiative introduces a 15% global minimum tax effective January 1, 2024, impacting Walmart's effective tax rate[82] - Failure to meet market expectations for financial performance could adversely affect the stock price and volatility[77] - Unfavorable currency exchange rate fluctuations may increase cost of sales and adversely affect gross profit[79] - Changes in tax and trade laws, including tariffs, could increase merchandise costs and affect financial performance[82] - Political instability and regulatory constraints in international markets could negatively impact Walmart's operations[80] - Compliance with new tax rules and regulations may require additional costs and affect results of operations[82] - The company accrued a liability of approximately 3.3billionforopioid−relatedsettlements,withalmostallpaidinfiscal2024[86]−Thecompanyfacespotentialfinesupto€20millionor4177.30 for fiscal 2024, compared to 100in2019[113]−Thecompanyrepurchased29,465,379sharesunderits20.0 billion share repurchase program in fiscal 2024[116] - Authorization for 16.5billionofsharerepurchasesremainedundertheprogramasofJanuary31,2024[114]−TheaveragepricepaidpershareforrepurchasesinJanuary2024was53.62[116] - Walmart's stock performance outperformed the S&P 500 Consumer Discretionary Distribution & Retailing Index in fiscal 2024[113] - The company's stock price increased from 153.58in2023to177.30 in 2024[113] - Walmart's share repurchase program has no expiration date or restrictions[114] - The company repurchased 10,211,025 shares in January 2024 at an average price of 53.62[116]−Walmart′sstocktradesunderthesymbol"WMT"ontheNewYorkStockExchange[110]−Companyrepurchased54.6millionsharesinfiscal2024atanaveragepriceof50.87 per share, totaling 2.779billion[153]−16.5 billion remains authorized under the 20.0billionsharerepurchaseprogramasofJanuary31,2024[152]−Totaldividendpaymentswere6.1 billion in fiscal 2024, with an approved annual dividend of 0.83pershareforfiscal2025[151]−Cashdividendsdeclaredin2023amountedto6.140 billion, compared to 6.114billionin2022[194]−PurchaseofCompanystockin2023totaled2.791 billion, a decrease from 9.866billionin2022[194]FinancialPositionandCashFlow−TotalassetsasofJanuary31,2024,are252,399 million, up from 243,197millionin2023[192]−Cashandcashequivalentsincreasedto9,867 million in 2024 from 8,625millionin2023[192]−Inventoriesdecreasedto54,892 million in 2024 from 56,576millionin2023[192]−Totalcurrentliabilitiesfor2024are92,415 million, slightly up from 92,198millionin2023[192]−Long−termdebtincreasedto36,132 million in 2024 from 34,649millionin2023[192]−Retainedearningsgrewto89,814 million in 2024 from 83,135millionin2023[192]−Totalequityincreasedto90,349 million in 2024 from 83,754millionin2023[192]−Netcashprovidedbyoperatingactivitiesincreasedto35.7 billion in fiscal 2024 from 28.8billioninfiscal2023[131]−Freecashflowgrewto15.1 billion in 2024 from 12.0billionin2023,supportedbyhigheroperatingcashflows[131]−Netcashprovidedbyoperatingactivitieswas35.7 billion in fiscal 2024, 28.8billioninfiscal2023,and24.2 billion in fiscal 2022[142] - Cash and cash equivalents were 9.9billionasofJanuary31,2024,comparedto8.6 billion as of January 31, 2023[143] - Net cash used in investing activities was 21.3billioninfiscal2024,17.7 billion in fiscal 2023, and 6.0billioninfiscal2022[145]−Netcashusedinfinancingactivitiesdecreasedby3.6 billion in fiscal 2024 compared to the previous fiscal year[147] - Short-term borrowings as of January 31, 2024, were 0.9billionwithaweighted−averageinterestrateof7.79.9 billion in fiscal 2024[149] - Total outstanding long-term debt increased by 0.7billioninfiscal2024,primarilyduetonewdebtissuanceinApril2023[151]−Estimatedcontractualinterestpaymentsforlong−termdebtamountto20.2 billion, with 1.8billionexpectedinfiscal2025[151]−Unrecordedpurchaseobligationstotal34.3 billion, with 14.6billionduewithinoneyear[154]−Variablerateborrowingsrepresent180.1 billion[165] - Net fair value of interest rate swaps increased by 35 million in fiscal 2024 due to market rate fluctuations[163] - Company maintains strong credit ratings: S&P (A-1+ for commercial paper, AA for long-term debt), Moody’s (P-1, Aa2), Fitch (F1+, AA)[156] - Currency exchange rate fluctuations resulted in a 0.3 billion net gain in the currency translation category for fiscal 2024[166] - The aggregate fair value of currency swaps was 1.3billionasofJanuary31,2024,downfrom1.4 billion in 2023[166] - A hypothetical 10% weakening of the U.S. dollar would change the value of swaps by 0.7billion[166]−Equityinvestmentsresultedinanetlossof3.8 billion in fiscal 2024 due to decreases in underlying stock prices[167] - The fair value of equity investments was 7.2billionasofJanuary31,2024[167]−Ahypothetical100.7 billion[167] - Total revenues for fiscal 2024 were 648.125billion,upfrom611.289 billion in 2023[188] - Operating income for fiscal 2024 was 27.012billion,comparedto20.428 billion in 2023[188] - Consolidated net income attributable to Walmart was 15.511billioninfiscal2024,upfrom11.680 billion in 2023[188] - Basic net income per common share attributable to Walmart was 1.92infiscal2024,comparedto1.43 in 2023[188] - Consolidated net income for fiscal year 2024 is 16,270million,comparedto11,292 million in 2023 and 13,940millionin2022[190]−ComprehensiveincomeattributabletoWalmartforfiscalyear2024is15,889 million, compared to 10,028millionin2023and16,673 million in 2022[190] - Total assets as of January 31, 2024, are 252,399million,upfrom243,197 million in 2023[192] - Cash and cash equivalents increased to 9,867millionin2024from8,625 million in 2023[192] - Inventories decreased to 54,892millionin2024from56,576 million in 2023[192] - Total current liabilities for 2024 are 92,415million,slightlyupfrom92,198 million in 2023[192] - Long-term debt increased to 36,132millionin2024from34,649 million in 2023[192]
Walmart(WMT)2024-03-15 20:54