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02/17/2022

Walmart reports strong Q4, full-year earnings

Walmart shared that it expects adjusted earnings per share growth in the mid-single digits for the fiscal year 2023.
Sandra Levy
Senior Editor
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Walmart shared its fourth quarter and full-year results.

Buoyed by strong holiday results globally, Walmart's fourth-quarter revenue, for the period ending Jan. 31, was $152.9 billion, an increase of .5%. The company noted that its revenue was negatively affected by $10.2 billion due to divestitures.

Walmart's fourth-quarter GAAP earnings per share were $1.28; adjusted EPS was $1.53; comp sales grew 5.6% in Walmart U.S., with market share gains in grocery; and e-commerce sales grew 1% and 70% on a two-year stack.

“We had another strong quarter to finish off a strong year. We have momentum in our business in all three segments. We’re being aggressive with our plans and executing on the strategy. It’s exciting to see how the teams are simultaneously navigating today’s challenges and reshaping our business,” Doug McMillon, Walmart president and CEO, said. 

[Read more: Walmart Health to expand to Florida]

The company also noted that competitive pricing remains in focus globally, with consolidated gross profit rates rising on10 basis points; and 54 basis points in Walmart U.S.

Sam’s Club comp sales increased 10.4%, and 21.2% on a two-year stack, with membership income, increasing 9.1%.

Walmart International’s net sales were $27 billion, a decrease of $7.9 billion, or 22.6%. Net sales were negatively affected by $10.1 billion due to divestitures. China, Mexico and Flipkart delivered strong growth, according to the company.

The company also reported on its navigation of supply chain costs and pandemic-related challenges, while executing strategic initiatives. Consolidated operating expenses as a percentage of net sales were relatively flat.

[Read More: Walmart, Sam’s Club eliminating mask mandate for vaccinated employees]

Consolidated operating income was $5.9 billion, an increase of 7.3%. Adjusted operating income increased 5.9%. Both were negatively affected by about 60 basis points due to divestitures, the company said.

In addition, the retailer noted that its inventory rose 26% globally and 28% in the U.S., which was affected by the higher cost of goods, mix and higher in-transit shipments.

With its full-year results, the company shared that its revenue was $572.8 billion, up 2.4%, and was negatively affected by $32.7 billion related to divestitures. Excluding currency, total revenue would have increased 1.6% to $568.2 billion. 

Walmart U.S. comp sales increased 6.4% and 15.0% on a two-year stack. while e-commerce sales in the U.S. grew 11.% and 90% on a two-year stack.

[Read More: Walmart’s latest fulfillment center to open in Mississippi]

The company reported robust growth in the marketplace and fulfillment services in the U.S., Mexico and India, as well as the addition of approximately 20,000 new sellers to the U.S. marketplace.

Sam’s Club comp sales increased 9.8% and 21.6% on a two-year stack and membership income increased 11.3%.

Walmart International’s net sales decreased 16.8%, which the retailer attributed to a decrease of approximately $32.6 billion related to divestitures. On the other hand, the company reported that it generated $24.2 billion in operating cash flow and returned $15.9 billion to shareholders through dividends and share repurchases.

GAAP EPS for the full year was $4.87; adjusted EPS for the full year was $6.46; and EPS is expected to grow in the mid-single-digits for fiscal 2023, the company said. 

[Read More: Walmart, Gatik partner on driverless truck pilot]

Also noted by the retailer was that its board of directors approved an annual cash dividend for the fiscal year 2023 of $2.24 per share, an increase of approximately 2% from the $2.20 per share paid for the last fiscal year. 

“We’re proud of our track record of returning meaningful cash to shareholders and are pleased to be increasing our annual dividend for the 49th consecutive year,” Brett Biggs, Walmart executive vice president and chief financial officer, said.

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