Walmart announced fourth-quarter 2023 results, including strong revenue growth of +5.7%. The Company’s omnichannel model continues to resonate with customers, helping to deliver strong growth, including comp sales of +4.0% for Walmart US. The company issued guidance for FY25, including growth in net sales in constant currency (“cc”) of +3% to 4% and operating income of +4% to 6%.
Fourth Quarter Highlights
• Consolidated revenue of $173.4 billion, up +5.7%, or +4.9% (cc)
• Consolidated gross margin rate is up 39bps due to improvement at Walmart US.
• Consolidated operating income up $1.7 billion, or +30.4%; adjusted operating income up +13.2%, positively affected by currency and LIFO of +2.3% and +1.0%, respectively
• Global eCommerce sales grew +23%
• Global advertising business grew about +33%, including +22% for Walmart Connect in the US.
• Adjusted EPS of $1.80 excludes the effect, net of tax, from a net gain of +0.23 on equity and other investments
• Walmart agrees to buy Television manufacturer VIZIO HOLDING CORP to accelerate Walmart Connect in the US further.
Full Year Highlights
• Consolidated revenue of $648.1 billion, up +6.0% or +5.5% (cc)
• Global advertising business grew about +28% to reach $3.4 billion
• Consolidated operating income up $6.6 billion, or +32.2%; adjusted operating income up +10.2%, growing faster than sales
• ROA at 6.6%; ROI at 15.0% , up +230 bps
• GAAP EPS of $5.74; Adjusted EPS of $6.65
WMT is fairly priced but subject to decline with any market weakness as the upside is limited.
