In a February 21^st release, Walmart Inc. (WMT) posted financial results for the fourth quarter of fiscal 2023. All U.S. retailers, both brick-and-mortar and online are subject to the same pressures from increased cost for goods, transport and labor in a competitive environment with concern over an impending recession. As a multinational company, Walmart faces additional risks associated with currency fluctuation, geopolitical events and adverse policies by regulators in host-Nations. Walmart serves as a bellwether for U.S retail combining groceries, clothing, electronics, drugs, toiletries and household necessities.

For the fourth quarter of FY 2023 ending January 31^st 2023 net income was $6,275 million on total revenue of $164,048 million.  Comparable figures for the fourth quarter of fiscal 2022 ending January 31^st 2022, were net income of $3,502 million on total revenue of $152,871 million. Diluted EPS increased from $1.28 for the second quarter of FY 2022 to $2.32 for the most recent quarter.

Comparing the fourth quarter of 2023 with the previous year gross margin fell from 24.4 percent to 23.5 percent and operating margin fell from 3.9 percent to 3.4 percent.

For FY 2023 ending January 31^st 2023 net income was $11,680 million on total revenue of $611,289 million.  Comparable figures for fiscal 2022 ending January 31^st 2022, were net income of $13,673 million on total revenue of $572,754 million. Diluted EPS decreased from $4.87 for FY 2022 to $2.27 for the most recent year, a decline of 12.3 percent.

In the call following the release, Doug McMillon, CEO and president stated “We're excited about our momentum. The team delivered a strong finish to the year. And as our results in the last two quarters show we acted quickly and aggressively to address the inventory and cost challenges we faced last year. We built momentum in the third quarter, and that continues. We're well positioned to start this fiscal year. For fiscal '23, we added $38 billion in sales globally, and we crossed $600 billion in revenue for the first time in our company's history. Globally, e-commerce now represents more than $80 billion in sales and over 13% of our total sales. Walmart U.S. grew sales by more than $27 billion. International had another strong year with sales and profit growth of about 9%, excluding divestitures, restructuring and currency.”

McMillon added, “As we plan this new fiscal year, we've anticipated stubborn inflation in dry grocery and consumables in particular, which will have some mixed impact. We'll stay focused on general merchandise and earn sales in those categories to offset that impact as much as possible. When we think about our business today compared to what it was during prior economic downturns, we now have a more compelling offer, a true omni-channel experience that makes us optimistic that more higher income families will continue shopping with us across categories because we have pickup, delivery and membership. And we're improving in categories like apparel and home. Our recently remodeled U.S. stores have a focus in those areas, and the early response from customers is promising.”

For the fourth quarter of FY 2023 segment results comprised:-

Walmart US: Net sales $113,700 million. Operating income $5,400 million. Comparable same-store sales up 8.3 percent (excluding fuel).

International: Net sales $27,600 million. Operating income $1,100 million.

Sam’s Club: Net sales $21,400 million. Operating income $500 million. Comparable same-store sales up 12.2 percent.

Walmart operates more than 10,500 stores worldwide of which 5,400 are in the U.S. including 600 Sam’s Club warehouses. Walmart operates 46 banners in 20 nations and employs 2.1 million.

Forward guidance for FY 2024 included:- A 2.5 to 3.0 percent increase in consolidated revenue; 2.2 percent increase in U.S. same-store sales; operating income up 3.0 percent, and an adjusted EPS  of  $5.90 to $6.05.

On January 31^st 2023, WMT posted assets of $243,457 million with long-term debt and lease obligations of $52,320 million. The Company had an intraday market capitalization of $381,440 million at noon on March 1^st. WMT trades with a forward P/E of 23.1 and has ranged over a 52-week period from $117.27 to $1141.46 with a 50-day moving average of $143.49.  Twelve-month trailing operating margin was 3.3 percent and profit margin 1.9 percent.  Return on assets over the past twelve months was 6.35.2 percent and the return on equity 12.8 percent. At close of trading on February 21^st pre-release, WMT was priced at $147.32. Post-release on February 22^nd WMT closed at $144.22.