Walmart U.S. net sales exceed $105 billion in Q4; comp sales grew 5.6%
Q4 FY22 GAAP EPS of $1.28; Adjusted EPS of $1.53
Company guides FY23 in-line with growth algorithm outlined last February
Planned share repurchases of at least $10 billion in FY23
Fourth-quarter highlights:
- Company delivers strong holiday results globally. Total revenue was $152.9 billion, up 0.5%, negatively affected by $10.2 billion due to divestitures.
- Strong sales in Walmart U.S. with market share gains in grocery. eCommerce sales grew 1% and 70% on a two-year stack.
- Competitive pricing remains in focus globally. Consolidated gross profit rate up 10 bps; 54 bps in Walmart U.S.
- Sam’s Club comp sales increased 10.4%, and 21.2% on a two-year stack. Membership income increased 9.1%.
- Walmart International net sales were $27.0 billion, a decrease of $7.9 billion, or 22.6%, negatively affected by $10.1 billion due to divestitures. China, Mexico and Flipkart delivered strong growth.
- Navigated higher supply chain costs and pandemic-related challenges well, while executing strategic initiatives. Consolidated operating expenses as a percentage of net sales was relatively flat.
- 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.
- Company prioritizes in-stock levels. Inventory up 26% globally; 28% in the U.S., affected by higher cost of goods, mix, and higher in-transit shipments.
Full-year highlights:
- Total revenue was $572.8 billion, up 2.4%, 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.
- Walmart U.S. eCommerce sales grew 11.0% and 90% on a two-year stack.
- Robust growth in marketplace and fulfillment services in the U.S., Mexico and India. Added approximately 20,000 new sellers to the U.S. marketplace.
- Global advertising business reached $2.1 billion as the company’s flywheel accelerates. In the U.S., active advertisers using Walmart Connect increased 136%.
- Sam’s Club comp sales increased 9.8% and 21.6% on a two-year stack. Membership income increased 11.3%.
- Walmart International net sales decreased 16.8%, negatively affected by approximately $32.6 billion related to divestitures.
- The company generated $24.2 billion in operating cash flow and returned $15.9 billion to shareholders through dividends and share repurchases.
- GAAP EPS of $4.87; Adjusted EPS of $6.46.
- Repurchased $9.8 billion in shares for the fiscal year, representing around 50% of the $20 billion authorization announced last year.
The company will hold a live conference call with the Investment Community at 7 a.m. CST on Thursday, Feb. 17, 2022, to discuss the company’s fourth quarter earnings results for fiscal year 2022. The event will be webcast live and accessible by logging onto https://corporate.walmart.com/newsroom/financial-events and selecting the Fourth Quarter Earnings Release event.
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