Walmart customers seeking value drive sales higher

Core Insights - Walmart reported strong fourth-quarter results, with fiscal revenue reaching $190.7 billion, a 5.6% increase year-over-year, driven by a 4.6% rise in U.S. comparable sales [1] - Online sales reached a record share of total sales, accounting for 23% of total sales in the U.S., with a 27% increase in e-commerce sales [5] - The company gained market share across various income tiers, indicating that its pricing and convenience strategies are appealing to a broader customer base [7] Financial Performance - Adjusted operating income grew by approximately 10%, outpacing the 5% growth in overall sales, driven by higher-margin businesses such as advertising and membership programs [7] - Advertising revenue increased by 37% globally, with a 41% growth for Walmart Connect in the U.S., while membership fee income rose by over 15% [7] - Inventory growth remained below sales growth, reflecting effective supply chain management [9] Future Outlook - Walmart anticipates sales growth of 3.5% to 4.5% for the current fiscal year, with operating profit expected to increase by 6% to 8% [9] - The results indicate that U.S. consumers are resilient and focused on value, while Walmart's investments in digital services and faster delivery are enhancing its competitive position [10]