Walmart posts Q4, FY results

Walmart shared fourth quarter results, including strong revenue growth of 5.7%. The company’s omnichannel model continues to resonate with customers helping to deliver strong growth, including comp sales of 4% for Walmart U.S., the company said.

"Our team delivered a great quarter, finishing off a strong year. We crossed $100 billion in eCommerce sales and drove share gains as our customer experience metrics improved, even during our highest volume days leading up to the holidays. We’re proud of the team and excited about building on our momentum as we work to bring prices down for our customers and members,” said Doug McMillon, president and CEO of Walmart.

Looking ahead, the company issued guidance for FY25, including growth in net sales in constant currency of 3% to 4% and operating income of 4% to 6%.

[Read more: Walmart raising pay for store managers, revamps bonus program]

Fourth Quarter Highlights:

• Consolidated revenue of $173.4 billion, up 5.7%, or 4.9% (cc) 
• Consolidated gross margin rate up 39bps due to improvement at Walmart U.S.
• Consolidated operating income up $1.7 billion, or 30.4%; adjusted operating income up 13.2%, positively affected by currency and LIFO of 2.3% and 1%, respectively
• Global e-commerce sales grew 23% 
• Global advertising business grew approximately 33%, including 22% for Walmart Connect in the U.S.
• Adjusted EPS  of $1.80 excludes the effect, net of tax, from a net gain of 23 cents on equity and other investments

Full Year Highlights:

• Consolidated revenue of $648.1 billion, up 6%, or 5.5% (cc)
• Global advertising business grew approximately 28% to reach $3.4 billion
• Consolidated operating income up $6.6 billion, or 32.2%; adjusted operating income up 10.2%, growing faster than sales
• ROA at 6.6%; ROI at 15%, up 230 bps

• GAAP EPS of $5.74; Adjusted EPS of $6.65

[Read more: Walmart plans on adding more than 150 larger format stores]

Walmart U.S.: 

• Delivered strong growth in both in-store and digital transaction counts; unit volumes increased 
• Share gains in grocery and general merchandise, primarily among higher-income households
• Growth in e-commerce of 17%, led by strength in pickup & delivery 
• Walmart Connect advertising sales grew 22%
• Sales strength led by grocery and health and wellness, while general merchandise sales declined modestly
• Gross profit rate increased 64 bps; operating expense deleverage of 30 bps 
• Inventory declined 4.5% with higher in-stock levels

Walmart International:

• Growth in net sales cc of 13% led by Flipkart, Walmex and China, helped by strong growth of festive events
• e-commerce sales increased 44%, led by marketplace and omnichannel offerings, penetration up across markets
• Advertising  business grew 76%, led by Flipkart and Walmex
• Timing of Flipkart’s The Big Billion Days positively affected growth for Q4
• Adjusted operating income up 13.5%, growing ahead of sales with strength across market

Sam’s Club U.S.:

• Solid comp sales, led by food and consumables as well as increases in transactions and unit volumes
• Gained dollar and unit market share in grocery
• Growth in eCommerce sales of 17% led by delivery and curbside
• Strong growth in membership income, up 10%, with record total membership and Plus penetration at quarter end
• Advertising business up 11% with record number of advertisers investing with MAP

First quarter guidance:

Consolidated net sales (cc) Increase 4% to 5%, leap year estimated to benefit approximately 100bps;

 Consolidated operating income (cc) increase 3% to 4.5%; 

Adjusted EPS $1.48 to $1.56 pre-split; 49 cents to 52 cents post-split

Fiscal year 2025 guidance:

Consolidated net sales (cc) Increase 3% to 4%;

Consolidated operating income (cc) Increase 4% to 6%;

Adjusted EPS $6.70 to $7.12 pre-split; $2.23 to $2.37 post-split