In a February 20^th release, Walmart Inc. (WMT) posted financial results for the 4^th quarter and Fiscal 2024 ending January 31^st 2024. All U.S. retailers, both brick-and-mortar and online are subject to the same pressures from increased costs for goods, transport and labor in a competitive environment with most consumer demographics and especially lower earners concerned over expenditure. 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 4^th quarter of FY 2024 ending January 31^st 2024 net income was $5,494 million on net revenue of $173,388 million that beat consensus estimates yielding a profit margin of 3.2 percent.  Comparable figures for the 4^th quarter of fiscal 2023 ending January 31^st 2023, were  net income of $6,277 million on total revenue of $164,048 million with a profit margin of 3.8 percent. Diluted EPS declined from $2.32 for the 4^th quarter of FY 2023 to $2.03 for the most recent quarter.

Comparing the 4^th quarter of FY 2024 with the corresponding quarter of the previous year, revenue was up 5.7 percent; comparable store sales up 4.0 percent for the U.S.; gross margin rose from 22.1 percent to 23.3 percent; operating margin increased from 3.4 percent to 4.2 percent for the most recent quarter.

For FY 2024 net income was $15,511 million on net revenue of $648,124 million.  Comparable figures for FY 2023 were net income of $11,680 million on total revenue of $611,289 million. Diluted EPS increased to $5.74 in FY 2024 compared to $4.27 for FY 2023.

In commenting on Q4 results, in the Investor’s Call, Doug McMillon, CEO and president stated “We were strong in the U.S., Mexico, Canada, and India, where we had the best Big Billion Days ever, and we continued the strong performance in China with the start of Chinese New Year. Typically, we see some of our customer experience scores dip during the high-volume hours and days we experience during the holidays. During Q4, the Walmart U.S. team delivered three-year high customer scores in our stores for pickup and delivery from stores and for those orders that flow directly from our e-commerce fulfillment centers”.

McMillon concluded “I'm excited about the omnichannel net promoter score trends the team is driving. Across countries, we continue to see a customer that's resilient but looking for value. As always, we're working hard to deliver that for them, including through our rollbacks on food pricing in Walmart U.S. Those were up significantly in Q4 versus last year, following a big increase in Q3”.

Forward guidance for FY 2025 included:- A 3.0 to 4.0 percent increase in consolidated revenue; operating income over a range of 4.0 to 6.0 percent, and an adjusted EPS of $6.70 to $7.20 (pre-split). Capital expenditure will be equivalent to 3.2 percent of net sales.

For the 4^th quarter of FY 2024 segment results comprised:-

• Walmart US: Net sales of $117,600 million, up 3.4 percent over Q4 FY 2023. Operating income $5,100 million with strong gains in groceries and general merchandise. Comparable same-store sales were up 4.0 percent (excluding fuel). Transactions were up 4.3 percent but ticket was down 0.3 percent. Growth in E-commerce, was up 17 percent over the corresponding quarter of FY 2023. Inventory declined approximately 4.5 percent.
• International: Net sales of $32,400 million, up 17.6 percent. Operating income was $1,300 million. Growth in E-commerce, 44 percent over the corresponding quarter of FY 2023.
• Sam’s Club U.S.: Net sales of $21,900 million, up 2.0 percent excluding fuel. Operating income was $600 million. Comparable same-store sales were up 3.1 percent. Membership revenue grew 10.0 percent. Growth in E-commerce, increased 17 percent over the corresponding quarter of FY 2023, attributed to curbside pick-up service and delivery.

Walmart operates more than 10,500 stores worldwide of which 5,400 are in the U.S. including 600 Sam’s Club warehouses. Walmart trades under 46 banners in 19 nations and employs 2.1 million.

On January 31^st 2024, Walmart posted assets of $252,399 million including goodwill of $28,113 million. Long-term debt and lease obligations amounted to $54,784 million. The Company had an intraday market capitalization of $458,650 million on February 20^th. WMT trades with a forward P/E of 24.1 and has ranged over a 52-week period from $136.09 to $181.35 with a 50-day moving average of $160.95.  Twelve-month trailing operating margin was 3.9 percent and profit margin 2.6 percent.  Return on assets over the past twelve months was 7.3 percent with a return on equity 19.7 percent. At close of trading on February 19^th pre-release, WMT was priced at $170.39. On November 20^th WMT opened post-release at $179.97, up 5.6 percent.  

WMT will split three-for-one on February 23^rd.