Walmart's robust sales in the 4Q 2023 were propelled by its omnichannel approach, which the company noted as continuing to appeal to customers and contributing to substantial growth.
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WalmartWalmart Inc. concluded fiscal 2024 on a positive note, with fourth-quarter revenues and earnings surpassing both year-over-year figures and the Zacks Consensus Estimate. Revenue growth was observed across all segments, and the company’s e-commerce sales exceeded $100 billion for the fiscal year, driven by the continued strength of its omnichannel approach.
In detail, Walmart reported adjusted earnings of $1.80 per share, marking a 5.3% increase from the previous year’s figure of $1.71, and comfortably surpassing the Zacks Consensus Estimate of $1.65. Total revenues amounted to $173.4 billion, representing a 5.7% year-over-year growth and exceeding the consensus estimate of $170.6 billion. Currency fluctuations contributed $1.3 billion to the revenue increase, while on a constant-currency basis, total revenues climbed 4.9%.
E-commerce sales experienced a notable surge of 23% globally, driven by pickup and delivery services, constituting 18% of Walmart’s overall net sales. The company also saw growth in membership income and increased transactions across both physical and digital channels.
The consolidated gross profit margin expanded by 39 basis points to 23.3%, attributed to effective pricing strategies and reduced markdowns. However, adjusted operating expenses saw a 16 basis points deleverage primarily due to higher variable pay expenses in the United States. Adjusted operating income increased by 13.2% to $7.3 billion, supported by positive impacts from currency movements and LIFO adjustments.
Within its segments:
- Walmart U.S. witnessed a 3.4% increase in net sales to $117.6 billion, with comp sales improving by 4% excluding fuel. Growth was driven by transactions, particularly in grocery and health & wellness categories, alongside a 17% rise in e-commerce sales.
- Walmart International reported a 17.6% increase in net sales to $32.4 billion, with notable contributions from Walmex, China, and Flipkart. E-commerce sales surged 44%.
- Sam’s Club U.S. observed a 3.3% growth in net sales to $19.4 billion, with comp sales (excluding fuel) increasing by 3.1%. E-commerce net sales rose by 17%.
Overall, Walmart’s strong performance across segments underscores the success of its omnichannel strategy and positions the company well for continued growth.
Read full results here
Source: Walmart
