Walmart Quarterly Performance Report: Q4 2022

Fourth Quarter Highlights

• Total sales increased by 0.5 percent to $152.9 billion, a decrease of $10.2 billion as a result of divestitures
• Walmart U.S. made strong sales this quarter, witnessing a gain in market share in grocery. Over a two-year period, eCommerce sales increased by 1% and 70%, respectively
• The consolidated gross profit rate increased by 10 basis points; in the United States, it increased by 54 basis points
• On a two-year stack, Sam's Club comp sales climbed 10.4 percent and 21.2 percent. The amount of money collected from members grew by 9.1%
• Walmart International witnessed net sales of $27.0 billion, down $7.9 billion, or 22.6 percent, mainly due to divestitures that cost $10.1 billion. China, Mexico, and Flipkart all saw significant increases
• While executing key plans, he successfully navigated higher supply chain costs and pandemic-related issues. As a percentage of net sales, consolidated operating expenses were basically steady
• The company's consolidated operating income increased by 7.3 percent to $5.9 billion. The adjusted operating income increased by 5.9%. Due to divestitures, both were negatively impacted by around 60 basis points
• The company places a premium on in-stock levels. Inventory is up 26% globally and 28% in the United States, due to the increasing cost of goods, mix, and in-transit shipments

Source: Walmart Investor Relations - Investors - Financial Information - Quarterly Results

FY2022 Highlights

• Total revenue increased by 2.4 percent to $572.8 billion, despite a $32.7 billion hit from divestitures. Total revenue would have climbed 1.6 percent to $568.2 billion if currency were not factored in
• On a two-year stack, Walmart's U.S. comp sales climbed by 6.4 percent and 15.0 percent, respectively
• Over a two-year period, Walmart's U.S. eCommerce sales increased by 11.0 percent and 90 percent, respectively
• Marketplace and fulfillment services have experienced strong growth in the United States, Mexico, and India. Approximately 20,000 new merchants have joined the marketplace in the United States
• As the company's flywheel accelerates, its global advertising business hit $2.1 billion. Active marketers utilizing Walmart Connect increased by 136 percent in the United States
• On a two-year stack, Sam's Club comp sales climbed 9.8% and 21.6 percent, respectively. The revenue from membership climbed by 11.3 percent
• Walmart International's net sales dropped 16.8% as a result of divestitures, which cost the company $32.6 billion
• Walmart generated $24.2 billion in operating cash flow and paid out $15.9 billion in dividends and share repurchases to shareholders
• GAAP earnings per share of $4.87; adjusted earnings per share of $6.46.
• For the fiscal year, the company repurchased $9.8 billion in shares, or about half of the USD 20 billion authorization announced the previous year

Source: Walmart Investor Relations - Investors - Financial Information - Quarterly Results

Fourth Quarter YoY Financial Comparison

• Total company sales were $151.52 billion in the fourth quarter, compared to $150.98 billion for the same period last year
• The expense ratio went negligibly down from 96.40% in the fourth quarter of 2020 to 96.10% in the same period this year
• The Operating Income Ratio slightly increased from 3.60% in Q4 2020 to 3.90% for the same period this year
• Net Earnings Ratio increased from (1.40)% in Q4 2020 to 2.40% for the same period this year

Source: Walmart Investor Relations - Investors - Financial Information - Quarterly Results

FY 2023 Outlook

Source: Walmart Investor Relations - Investors - Financial Information - Quarterly Results

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