Walmart(US:WMT)2024-03-15 20:54Financial Performance - Total revenues for fiscal 2024 were $648.1 billion, with net sales of $642.6 billion[15] - Net sales for fiscal 2024 were $642.637 billion, a 6.1% increase from fiscal 2023[125] - Gross profit as a percentage of net sales increased to 23.7% in fiscal 2024 from 23.5% in fiscal 2023[125] - Operating income as a percentage of net sales increased to 4.2% in fiscal 2024 from 3.4% in fiscal 2023[125] - Return on Assets (ROA) increased to 6.6% in fiscal 2024 from 4.6% in fiscal 2023, driven by higher operating income[126] - Return on Investment (ROI) increased to 15.0% in fiscal 2024 from 12.7% in fiscal 2023, due to higher operating income and improved business performance[126] - Consolidated net income for fiscal 2024 was $16.3 billion, an increase of $5.0 billion compared to the previous year[135] - Effective income tax rate for fiscal 2024 was 25.5%, lower than the 33.6% rate in fiscal 2023 due to the tax impact of business reorganization[135] - Total revenues increased by $36.8 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 $15.511 billion in fiscal 2024, up from $11.680 billion in 2023[188] - Basic net income per common share attributable to Walmart was $1.92 in fiscal 2024, compared to $1.43 in 2023[188] - Consolidated net income for fiscal year 2024 is $16,270 million, compared to $11,292 million in 2023 and $13,940 million in 2022[190] - Comprehensive income attributable to Walmart for fiscal year 2024 is $15,889 million, compared to $10,028 million in 2023 and $16,673 million in 2022[190] - Consolidated net income for fiscal 2024 was $16.27 billion, up from $11.29 billion in fiscal 2023[196] Segment Performance - Walmart U.S. segment generated $441.8 billion in net sales for fiscal 2024, representing 69% of consolidated net sales[19] - Walmart International segment had net sales of $114.6 billion for fiscal 2024, accounting for 18% of consolidated net sales[27] - Sam's Club achieved net sales of $86.2 billion in fiscal 2024, representing 13% of Walmart's consolidated net sales[33] - Walmart International's highest sales volume historically occurs in the fourth fiscal quarter[30] - Sam's Club's highest sales volume historically occurs in the fiscal quarter ending January 31[38] - Walmart International operations generated approximately 18% of consolidated net sales in fiscal 2024[80] - Walmart U.S. and Sam's Club operating segments generated approximately 82% of consolidated net sales in fiscal 2024[82] - Net sales for Walmart U.S. segment increased by $21.3 billion or 5.1% in fiscal 2024, with comparable sales growth of 5.5%[136] - Walmart International segment net sales increased by $13.7 billion or 13.5% in fiscal 2024, supported by positive currency exchange rate fluctuations of $3.0 billion[138] - Operating income for Walmart U.S. segment increased by $1.5 billion in fiscal 2024, reaching $22.154 billion[136] - Walmart International segment operating income increased by $1.9 billion in fiscal 2024, reaching $4.909 billion[138] - Sam's Club segment net sales increased by $1.8 billion (2.2%) in fiscal 2024 and $10.8 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 $20.6 billion in 2024 from $16.9 billion in 2023, driven by supply chain and technology investments[130] - Capital expenditures for fiscal 2025 are projected to be approximately $20 billion to $24 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 $3.3 billion for opioid-related settlements, with almost all paid in fiscal 2024[86] - The company faces potential fines up to €20 million or 4% of global annual turnover for GDPR non-compliance[83] - In China, PIPL violations can result in fines ranging from RMB 50 million to up to 5% of the company's previous year's revenues generated within China[83] - The company is subject to a quasi-judicial administrative process in Mexico for alleged monopolistic practices, with potential financial impact uncertain[86] - The company has made changes to comply with China's Personal Information Protection Act (PIPL) and may make further adjustments as regulations evolve[83] - The company is involved in multidistrict litigation related to opioids, with outcomes and potential losses still uncertain[86] - The company is responding to investigations and subpoenas related to controlled substance dispensing and distribution practices involving opioids[86] - The company faces potential penalties and operational changes due to non-compliance with data privacy laws such as CCPA, GDPR, and PIPL[83] - The company is cooperating with U.S. Department of Justice investigations related to consumer fraud prevention and anti-money laundering compliance[87] - The company's exclusive forum provision in its bylaws may increase costs for shareholders to bring claims and limit favorable judicial forums[88] Shareholder Returns and Stock Performance - Walmart's cumulative total shareholder return was $177.30 for fiscal 2024, compared to $100 in 2019[113] - The company repurchased 29,465,379 shares under its $20.0 billion share repurchase program in fiscal 2024[116] - Authorization for $16.5 billion of share repurchases remained under the program as of January 31, 2024[114] - The average price paid per share for repurchases in January 2024 was $53.62[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 $153.58 in 2023 to $177.30 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's stock trades under the symbol "WMT" on the New York Stock Exchange[110] - Company repurchased 54.6 million shares in fiscal 2024 at an average price of $50.87 per share, totaling $2.779 billion[153] - $16.5 billion remains authorized under the $20.0 billion share repurchase program as of January 31, 2024[152] - Total dividend payments were $6.1 billion in fiscal 2024, with an approved annual dividend of $0.83 per share for fiscal 2025[151] - Cash dividends declared in 2023 amounted to $6.140 billion, compared to $6.114 billion in 2022[194] - Purchase of Company stock in 2023 totaled $2.791 billion, a decrease from $9.866 billion in 2022[194] Financial Position and Cash Flow - Total assets as of January 31, 2024, are $252,399 million, up from $243,197 million in 2023[192] - Cash and cash equivalents increased to $9,867 million in 2024 from $8,625 million in 2023[192] - Inventories decreased to $54,892 million in 2024 from $56,576 million in 2023[192] - Total current liabilities for 2024 are $92,415 million, slightly up from $92,198 million in 2023[192] - Long-term debt increased to $36,132 million in 2024 from $34,649 million in 2023[192] - Retained earnings grew to $89,814 million in 2024 from $83,135 million in 2023[192] - Total equity increased to $90,349 million in 2024 from $83,754 million in 2023[192] - Net cash provided by operating activities increased to $35.7 billion in fiscal 2024 from $28.8 billion in fiscal 2023[131] - Free cash flow grew to $15.1 billion in 2024 from $12.0 billion in 2023, supported by higher operating cash flows[131] - Net cash provided by operating activities was $35.7 billion in fiscal 2024, $28.8 billion in fiscal 2023, and $24.2 billion in fiscal 2022[142] - Cash and cash equivalents were $9.9 billion as of January 31, 2024, compared to $8.6 billion as of January 31, 2023[143] - Net cash used in investing activities was $21.3 billion in fiscal 2024, $17.7 billion in fiscal 2023, and $6.0 billion in fiscal 2022[145] - Net cash used in financing activities decreased by $3.6 billion in fiscal 2024 compared to the previous fiscal year[147] - Short-term borrowings as of January 31, 2024, were $0.9 billion with a weighted-average interest rate of 7.7%[148] - Maximum amount outstanding at any month-end for short-term borrowings was $9.9 billion in fiscal 2024[149] - Total outstanding long-term debt increased by $0.7 billion in fiscal 2024, primarily due to new debt issuance in April 2023[151] - Estimated contractual interest payments for long-term debt amount to $20.2 billion, with $1.8 billion expected in fiscal 2025[151] - Unrecorded purchase obligations total $34.3 billion, with $14.6 billion due within one year[154] - Variable rate borrowings represent 18% of total short-term and long-term debt as of January 31, 2024[165] - A 100 basis point change in market rates would impact annual interest costs by approximately $0.1 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 $1.3 billion as of January 31, 2024, down from $1.4 billion in 2023[166] - A hypothetical 10% weakening of the U.S. dollar would change the value of swaps by $0.7 billion[166] - Equity investments resulted in a net loss of $3.8 billion in fiscal 2024 due to decreases in underlying stock prices[167] - The fair value of equity investments was $7.2 billion as of January 31, 2024[167] - A hypothetical 10% change in stock prices would alter the fair value of equity investments by $0.7 billion[167] - Total revenues for fiscal 2024 were $648.125 billion, up from $611.289 billion in 2023[188] - Operating income for fiscal 2024 was $27.012 billion, compared to $20.428 billion in 2023[188] - Consolidated net income attributable to Walmart was $15.511 billion in fiscal 2024, up from $11.680 billion in 2023[188] - Basic net income per common share attributable to Walmart was $1.92 in fiscal 2024, compared to $1.43 in 2023[188] - Consolidated net income for fiscal year 2024 is $16,270 million, compared to $11,292 million in 2023 and $13,940 million in 2022[190] - Comprehensive income attributable to Walmart for fiscal year 2024 is $15,889 million, compared to $10,028 million in 2023 and $16,673 million in 2022[190] - Total assets as of January 31, 2024, are $252,399 million, up from $243,197 million in 2023[192] - Cash and cash equivalents increased to $9,867 million in 2024 from $8,625 million in 2023[192] - Inventories decreased to $54,892 million in 2024 from $56,576 million in 2023[192] - Total current liabilities for 2024 are $92,415 million, slightly up from $92,198 million in 2023[192] - Long-term debt increased to $36,132 million in 2024 from $34,649 million in 2023[192]