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WMT · Walmart Inc.

35 filings

10-K

WMT 10-K Annual Reports

Walmart Inc. - 35 annual reports

Filing record · 2016–202610-K1110-Q328-K158

2026
Walmart Inc. Annual Report, Year Ended Jan 31, 2026
Walmart Inc. reported a robust fiscal year ended January 31, 2026, with total revenues reaching $713.2 billion, up 4.7% year-over-year. The company demonstrated strong comparable sales growth across its segments, particularly in Walmart U.S. and Walmart International, driven by increasing customer traffic, average ticket size, and continued strength in omnichannel offerings like pickup and delivery. Operating income saw a modest increase to $29.8 billion, though operating income margin slightly decreased year-over-year due to increased self-insured liability claims and specific charges related to share-based compensation for its PhonePe subsidiary. Financially, Walmart generated healthy free cash flow of $14.9 billion and continues to focus on strategic capital allocation towards technology, supply chain, and customer-facing initiatives, including significant investments in automation and AI. The company also returned substantial capital to shareholders through dividends ($7.5 billion) and share repurchases ($8.1 billion), underscoring its commitment to shareholder value. Despite facing ongoing risks related to macroeconomic conditions, competition, and supply chain dynamics, Walmart's diversified business model and strategic investments position it for continued resilience and growth.
Mar 13, 2026
2025
Walmart Inc. Annual Report, Year Ended Jan 31, 2025
Walmart Inc. reported robust financial performance for the fiscal year ended January 31, 2025, with total revenues reaching $681.0 billion, a 5.1% increase over the previous year. This growth was driven by strong comparable sales across all segments, particularly in the U.S. operations (Walmart U.S. and Sam's Club U.S.), which saw increases of 4.8% and 4.7% respectively, fueled by consistent demand in grocery and health & wellness categories. The company continues its strategic focus on omni-channel integration, technology investments, and expanding its ecosystem of services, including advertising and financial services, aiming to enhance customer convenience and drive margin improvement. While facing some headwinds from macroeconomic factors and ongoing litigation, Walmart's diversified business model, commitment to Everyday Low Prices (EDLP) and Everyday Low Cost (EDLC), and significant free cash flow generation of $12.7 billion underscore its resilience and continued ability to return value to shareholders through dividends and share repurchases.
Mar 14, 2025
2024
Walmart Inc. Annual Report, Year Ended Jan 31, 2024
Walmart Inc. reported significant revenue growth for fiscal year 2024, reaching $648.1 billion, a 6.0% increase over the prior year. This growth was primarily driven by strong comparable sales across its major segments: Walmart U.S., Walmart International, and Sam's Club. The company's strategic focus on omni-channel capabilities, including e-commerce, continues to yield positive results, with e-commerce sales contributing positively to comparable sales growth. The company also demonstrated improved profitability, with operating income increasing by 32% year-over-year, partly due to favorable year-over-year comparisons that lapped significant legal settlement charges in the prior year. Walmart continues to invest heavily in its business, with capital expenditures totaling $20.6 billion, focused on technology, supply chain, and customer-facing initiatives. The company also returned significant capital to shareholders through dividends and share repurchases. While the company faces ongoing risks related to macroeconomic conditions, competition, and cybersecurity, its strong financial position, diversified business model, and strategic investments position it for continued resilience and growth.
Mar 15, 2024
2023
Walmart Inc. Annual Report, Year Ended Jan 31, 2023
Walmart Inc.'s annual report for the fiscal year ended January 31, 2023, highlights a year of solid revenue growth driven by strong comparable sales across its U.S. and Sam's Club segments. Total revenues reached $611.3 billion, a 6.7% increase year-over-year, reflecting continued consumer demand even amidst inflationary pressures. The company demonstrated resilience in its core U.S. operations, with Walmart U.S. comparable sales up 7.0%. Sam's Club also showed robust performance with a 14.6% comparable sales increase, boosted by membership growth. Despite the top-line growth, net income decreased to $11.3 billion from $13.9 billion in the prior year, largely due to significant opioid-related legal settlement charges totaling $3.3 billion and other restructuring costs. The company continues to invest heavily in its omnichannel strategy, supply chain, and technology to enhance customer experience and drive future growth. While facing operational headwinds like higher inventory costs and inflation, Walmart remains committed to its strategy of everyday low prices and disciplined cost management, positioning itself for continued relevance in a dynamic retail landscape.
Mar 17, 2023
2022
Walmart Inc. Annual Report, Year Ended Jan 31, 2022
Walmart Inc.'s (WMT) fiscal year 2022 10-K filing reveals a company demonstrating resilience and strategic adaptation in a dynamic retail environment. The company achieved significant revenue growth, driven by strong comparable sales across its U.S. segments and a notable increase in Sam's Club performance. Despite facing economic headwinds and ongoing global uncertainties, Walmart continues to invest heavily in its omni-channel strategy, including e-commerce, technology, and supply chain enhancements, aiming to create a seamless customer experience and reinforce its 'flywheel' effect. The company's strategic capital allocation prioritizes these growth initiatives, shifting investment away from new store openings towards improving existing operations and digital capabilities. While facing increased wage investments and some integration costs from recent divestitures, Walmart maintained its commitment to shareholder returns through dividends and share repurchases, signaling confidence in its operational discipline and long-term growth prospects. Key financial metrics, such as operating income and return on investment, showed improvement, reflecting the company's ability to manage costs and drive efficiency.
Mar 18, 2022
2021
Walmart Inc. Annual Report, Year Ended Jan 31, 2021
Walmart Inc. reported strong performance for the fiscal year ended January 31, 2021, with total revenues reaching $559.2 billion, an increase driven by robust comparable sales growth across its major segments, particularly Walmart U.S. The company navigated the challenges of the COVID-19 pandemic, which accelerated its eCommerce growth and omni-channel initiatives, while also incurring incremental operating costs. Strategic actions, including divestitures of international operations, were undertaken to strengthen the long-term portfolio. Walmart demonstrated resilience and adaptability, with a significant boost in eCommerce sales contributing positively to comparable sales. The company continues to invest in technology, supply chain, and customer-facing initiatives, including the launch of Walmart+. Despite increased costs related to the pandemic and restructuring charges, the company maintained operating discipline and generated substantial free cash flow, underscoring its financial strength and commitment to shareholder returns through dividends and share repurchases. The company's outlook remains focused on efficient growth and strategic capital allocation.
Mar 19, 2021
2020
Walmart Inc. Annual Report, Year Ended Jan 31, 2020
Walmart Inc. concluded its fiscal year ending January 31, 2020, with total revenues of $524 billion, a 1.9% increase year-over-year. The company demonstrated resilience with positive comparable sales growth in its U.S. segments (Walmart U.S. and Sam's Club) and continued investment in its omni-channel strategy, particularly in eCommerce and technology. Despite economic uncertainties and the looming impact of global events, Walmart maintained its focus on 'Everyday Low Price' and 'Everyday Low Cost' to drive customer value. Key strategic initiatives included expanding delivery and pickup services, strengthening its international portfolio through acquisitions and divestitures, and optimizing its supply chain. The company also continued to return capital to shareholders through dividends and share repurchases, reflecting a commitment to financial discipline and shareholder returns. While facing competitive pressures and operational risks, Walmart's diversified business model and scale provide a strong foundation for navigating the evolving retail landscape.
Mar 20, 2020
2019
Walmart Inc. Annual Report, Year Ended Jan 31, 2019
Walmart Inc. concluded its fiscal year ended January 31, 2019, with a consolidated revenue of $514.4 billion, an increase of 2.8% from the prior year. The company demonstrated revenue growth across its primary segments, with Walmart U.S. reporting a 4.1% increase and Walmart International showing a 2.3% rise, although Sam's Club experienced a 2.3% decrease in net sales. A significant strategic move during the fiscal year was the acquisition of a majority stake in Flipkart, an Indian eCommerce marketplace, for $16 billion. This investment, alongside ongoing efforts to enhance its eCommerce capabilities and integrate them with its physical store network, underscores Walmart's commitment to adapting to evolving consumer shopping habits. The company also reported a substantial pre-tax net loss of $4.8 billion related to the divestiture of 80% of Walmart Brazil. Despite these major transactions and ongoing investments in digital initiatives, Walmart maintained its operational discipline, as evidenced by a decrease in operating expenses as a percentage of net sales, and continued to return capital to shareholders through dividends and share repurchases.
Mar 28, 2019
2018
Walmart Inc. Annual Report, Year Ended Jan 31, 2018
Walmart Inc.'s Form 10-K for the fiscal year ended January 31, 2018, highlights a year of robust revenue growth, reaching $500.3 billion, with a 3.0% increase in net sales. The company is actively investing in its omnichannel strategy, particularly in eCommerce and technology, evidenced by its acquisition of Jet.com and the formation of Store No. 8. This strategic shift aims to enhance customer experience and integrate digital and physical retail seamlessly. The report also details significant capital expenditures focused on remodels, eCommerce, and technology, a shift from prioritizing new store openings. While the Walmart U.S. segment remains the largest contributor to revenue and operating income, the company is navigating challenges such as increased operating expenses due to strategic investments and specific charges. Management emphasizes its commitment to returning value to shareholders through dividends and share repurchases, while also highlighting the impact of the Tax Cuts and Jobs Act of 2017 on its tax rate and financial reporting.
Mar 30, 2018
2017
Walmart Inc. Annual Report, Year Ended Jan 31, 2017
Walmart's fiscal 2017 (year ended January 31, 2017) showed modest top-line growth alongside pressure on profitability as the company invested heavily in wages, e-commerce, and technology. Total revenues rose 0.8% to $485.9 billion and net sales rose 0.6% to $481.3 billion, supported by U.S. calendar comparable store and club sales growth of 1.4% and e-commerce growth. Those gains were offset by an $11.0 billion (2.3%) currency headwind, mainly from the Walmart International segment, where net sales fell 5.9%. Operating income declined 5.6% to $22.8 billion, and operating margin compressed to 4.7% from 5.0%, reflecting higher associate wage expense from the 2015–2016 pay initiatives, a $370 million charge for discontinued real estate projects and severance, and digital investments. Diluted EPS from continuing operations was $4.38, down from $4.57. Cash generation improved meaningfully. Operating cash flow rose to $31.5 billion from $27.4 billion, driven by working capital management and tax benefits, and free cash flow reached $20.9 billion versus $15.9 billion a year earlier. Management returned capital through $6.2 billion in dividends and $8.3 billion in share repurchases, and raised the fiscal 2018 annual dividend to $2.04 per share. Long-term debt fell to $38.3 billion, and the company maintains strong credit ratings (AA / Aa2 / AA). The filing also flags significant strategic and legal considerations. Management plans to increase investment in e-commerce, technology, and remodels while moderating new store openings, with fiscal 2018 capital expenditures projected at about $11.0 billion. Key acquisitions included Jet.com ($2.4 billion) and a roughly 10% stake in JD.com. Legal exposures include an ongoing FCPA investigation (where management believes a loss is probable but cannot estimate it), nearly 10,000 UK ASDA equal-value pay claims, and securities and derivative litigation. Investors should weigh the trade-off between near-term margin pressure and the longer-term e-commerce and cash-flow thesis.
Mar 31, 2017
2016
Walmart Inc. Annual Report, Year Ended Jan 31, 2016
Walmart's fiscal 2016 10-K (year ended January 31, 2016) shows a company in a deliberate investment phase. Total revenues fell 0.7% to $482.1 billion and net sales declined to $478.6 billion, but the decline was driven largely by $17.1 billion of unfavorable currency translation and a $1.9 billion drop in fuel sales, not by weakness in the core U.S. business. Walmart U.S. net sales grew 3.6% to $298.4 billion, with comparable sales up 1.0%, while Walmart International fell 9.4% (almost entirely from currency) and Sam's Club fell 2.1% on lower fuel prices. Consolidated operating income dropped 11.2% to $24.1 billion, and diluted EPS fell to $4.57 from $4.99, reflecting roughly $0.9 billion of store-closure charges announced in January 2016, higher associate wage costs tied to the new U.S. pay structure, and continued digital and IT spending. Management has explicitly shifted its financial priorities toward growth, balanced by returns, and warned that operating expenses may grow at or above the rate of net sales in the near term. Cash generation remained solid, with operating cash flow of $27.4 billion and free cash flow of $15.9 billion, though both declined year over year. Walmart returned capital through $6.3 billion in dividends and $4.1 billion in buybacks, and it raised the fiscal 2017 dividend to $2.00 per share. A new $20.0 billion repurchase program was authorized, with $17.5 billion remaining at year-end. Total debt was reduced by about $4.7 billion to $41.0 billion, and the company retains AA / Aa2 / AA credit ratings. Investors should weigh several risk items. The company disclosed a material weakness in lease accounting during fiscal 2016, which it reports as remediated in the fourth quarter. Ongoing FCPA investigations by the DOJ and SEC, along with related shareholder suits, carry unquantifiable potential losses that management nonetheless describes as probable. The ASDA UK "equal value" pay claims involve more than 7,000 employees and remain unresolved. Finally, the Brazilian labor and tax exposures are significant. Management expects fiscal 2017 wage increases of about $1.5 billion to weigh on margins further.
Mar 30, 2016
2015
Walmart Inc. Annual Report, Year Ended Jan 31, 2015
Walmart (WMT) reported fiscal 2015 (year ended January 31, 2015) total revenues of $485.7 billion, up 2.0%, with net sales of $482.2 billion, up 1.9%. Growth was driven by 3.0% year-over-year growth in retail square feet, positive U.S. comparable sales (up 0.5% including fuel), and higher e-commerce sales, partially offset by $5.3 billion of negative currency translation impact. Operating income rose only 1.0% to $27.1 billion, so the company did not meet its stated goal of growing operating income at least as fast as net sales. Diluted EPS from continuing operations was $4.99, versus $4.85 in fiscal 2014, and return on investment was 16.9%, roughly flat versus 17.0%. Profitability pressures were concentrated in a few items: a $249 million charge tied to the U.S. wage-and-hour litigation (the Braun/Hummel case), $148 million of costs to close about 30 underperforming Japanese stores, higher U.S. health-care expenses, and continued digital investment. Walmart U.S. operating income fell 2.1% to $21.3 billion on a 3.1% sales increase, while Walmart International operating income rose 19.8% to $6.2 billion after a prior-year charge of nearly $1.0 billion, despite a 0.3% sales decline. Sam's Club operating income grew 7.2% to $2.0 billion. Management also disclosed that, starting in fiscal 2016, it will raise U.S. associate pay for about 500,000 workers, adding roughly $1.0 billion of expense that may limit operating leverage. Balance sheet and cash flow strengthened. Operating cash flow rose to $28.6 billion and free cash flow to $16.4 billion, versus $10.1 billion in fiscal 2014, helped partly by the timing of payables and tax payments. Short-term borrowings fell by $6.3 billion, the debt-to-total-capitalization ratio improved to 38.2% from 42.6%, and the dividend was raised to $1.96 per share for fiscal 2016. Share repurchases were sharply reduced to $1.0 billion from $6.7 billion. Key open risks include the ongoing FCPA investigation by the DOJ and SEC (with $173 million of fiscal 2015 costs and management judging a loss probable but not estimable), and the ASDA "equal value" claims in the UK, which exceed 4,000.
Apr 1, 2015
2014
Walmart Inc. Annual Report, Year Ended Jan 31, 2014
Walmart's fiscal 2014 10-K (year ended January 31, 2014) reports total revenues of $476.3 billion, up 1.6%, and net sales of $473.1 billion. Growth was modest and quality of earnings weakened: U.S. comparable sales fell 0.5%, consolidated operating income declined 3.1% to $26.9 billion, and diluted EPS fell to $4.85 from $5.01. Management acknowledged it missed its own objectives of growing operating expenses slower than sales and operating income faster than sales. Walmart U.S. remains the engine at 59% of net sales and $22.4 billion of operating income, while Walmart International (29% of sales) saw operating income fall 17.6% to $5.5 billion, driven by nearly $1.0 billion of one-time or non-recurring charges in Brazil, China, Mexico and India. The balance sheet and cash generation remain solid but show some pressure. Free cash flow fell to $10.1 billion from $12.7 billion, largely due to the timing of income tax payments. Long-term debt rose to $41.8 billion, and the debt-to-total-capitalization ratio increased to 42.6% from 41.5%. Walmart still carries AA/Aa2/AA ratings and returned $12.8 billion to shareholders through $6.1 billion in dividends and $6.7 billion in buybacks. The company declared a fiscal 2015 dividend of $1.92 per share, a 2.1% increase, and $11.3 billion remains under its share repurchase authorization. The most significant risk for investors is the ongoing FCPA investigation involving Wal-Mart de Mexico, which has been under DOJ and SEC investigation since November 2011. The company has incurred $282 million of related costs in fiscal 2014 and states that it believes a loss is probable, though it cannot estimate the amount. Other material risks include gender discrimination class actions (Dukes and related cases), the wage-and-hour Braun/Hummel judgment, and the company's continuing expansion plans, which call for $12.4 to $13.4 billion of fiscal 2015 capital expenditures.
Mar 21, 2014
2013
Walmart Inc. Annual Report, Year Ended Jan 31, 2013
Walmart's fiscal 2013 (year ended January 31, 2013) 10-K shows a company still growing its top line while investing heavily in price, e-commerce, and international expansion. Total revenues rose 5.0% to $469.2 billion and net sales rose 5.0% to $466.1 billion. Operating income grew 4.7% to $27.8 billion, slightly slower than sales, as the gross profit rate fell 12 basis points to 24.4% on price investment. Diluted EPS from continuing operations was $5.02, up from $4.54. U.S. calendar comparable sales rose 2.4%, with Walmart U.S. at 2.0% and Sam's Club at 4.1%. Walmart International, now 29% of net sales, grew 7.4% and remains the main source of expansion. Cash generation was strong. Operating cash flow was $25.6 billion and free cash flow was $12.7 billion, up $2.0 billion year over year. Management used this cash for $13.0 billion in shareholder returns, comprising $5.4 billion in dividends and $7.6 billion in buybacks, and kept leverage manageable, with the debt-to-total-capitalization ratio falling to 41.5% from 42.8%. The board also raised the fiscal 2014 dividend about 18% to $1.88 per share, and management guided fiscal 2014 EPS to $5.20 to $5.40, including roughly $0.09 of incremental e-commerce expense. The main investor risk in this filing is the ongoing FCPA investigation, which covers Walmex in Mexico and other markets and is being pursued by the DOJ and SEC. Walmart has incurred $157 million of related costs in fiscal 2013 and says a loss is probable but cannot yet be estimated. Additional matters include the Dukes gender discrimination litigation and a wage-and-hour class action with a judgment of roughly $188 million under appeal. Management believes none of these will be material, though the uncertainty is significant.
Mar 26, 2013
2012
Walmart Inc. Annual Report, Year Ended Jan 31, 2012
Walmart's Form 10-K for the fiscal year ended January 31, 2012 reports net sales of $443.9 billion, up 5.9% year over year, with operating income of $26.6 billion (up 4.0%) and income from continuing operations attributable to Walmart of $15.8 billion, or $4.54 diluted EPS (vs. $4.18 in fiscal 2011). Growth was driven by 5.3% added retail square footage, a 1.6% increase in U.S. calendar comparable sales (Walmart U.S. only +0.3%, Sam's Club +8.4%), currency translation benefits of $4.0 billion, and $4.7 billion of sales from the Massmart and Netto acquisitions. Gross profit margin fell 33 basis points to 24.5% as the company invested in price, and return on investment declined to 18.6% from 19.2%, which management attributed to heavier capex, Global eCommerce spending, and higher inventories. Cash generation remained strong but slightly lower: operating cash flow was $24.3 billion and free cash flow was $10.7 billion, down from $10.9 billion, as capital expenditures of $13.5 billion grew faster than operating cash flow. The company returned roughly $11.3 billion to shareholders through $5.0 billion in dividends and $6.3 billion in buybacks, and it has $11.3 billion of remaining repurchase authorization. Total debt rose to about $46 billion and the debt-to-total-capitalization ratio increased to 42.8% from 42.1%, though the company maintained AA/Aa2 long-term ratings. Management guided to fiscal 2013 capex of $13–14 billion, an effective tax rate of 32.5%–33.5%, and a 9% dividend increase to $1.59 per share. Investors should also note several risk items disclosed in the filing: the Dukes gender discrimination class action (following the Supreme Court's June 2011 decertification and subsequent refiling efforts), the Braun/Hummel wage-and-hour judgment (approximately $188 million, under appeal), an ongoing U.S. environmental criminal investigation under RCRA, and an internal FCPA investigation that the company has voluntarily disclosed to the DOJ and SEC. Management said it cannot estimate potential liability from the FCPA review but does not expect a material adverse effect.
Mar 27, 2012
2011
Walmart Inc. Annual Report, Year Ended Jan 31, 2011
Walmart's fiscal 2011 (year ended January 31, 2011) showed steady top-line growth with net sales rising 3.4% to $419.0 billion, helped by $4.5 billion of favorable currency effects and 3.4% growth in retail square footage. Profitability improved faster than sales: operating income grew 6.4% to $25.5 billion, operating expenses grew only 1.7%, and diluted EPS from continuing operations reached $4.18, up from $3.73. The core U.S. business was the soft spot. Walmart U.S. comparable store sales fell 1.5% on weaker customer traffic, and total U.S. comparable sales declined 0.6%. Growth came mainly from Walmart International, where net sales rose 12.1% to $109.2 billion and operating income rose 14.4%, and from Sam's Club, where comparable club sales grew 3.9%. Capital allocation was aggressive. Management repurchased $14.8 billion of stock and paid $4.4 billion in dividends, with the board approving a 21% dividend increase to $1.46 per share for fiscal 2012. Free cash flow fell to $10.9 billion from $14.1 billion because of heavy inventory investment, and the debt-to-total-capitalization ratio rose to 42.1% from 37.0%. Walmart still holds AA-range ratings from S&P, Fitch and DBRS and Aa2 from Moody's. Forward-looking items include a fiscal 2012 capex plan of $12.5–13.5 billion, pending acquisitions of Netto and a 51% stake in Massmart, and a $1.2 billion charge expected in fiscal 2012 relating to ASDA's pension plan. The main investor risks are the U.S. traffic decline, ongoing litigation (notably the Dukes gender discrimination class action, which the Supreme Court agreed to hear and heard argument on March 29, 2011, and which the company says it cannot reasonably estimate), currency exposure, and rising leverage funding buybacks. The filing also discloses a criminal investigation under hazardous materials law that management does not expect to be material, and the March 11, 2011 Japan earthquake, whose damage management could not yet estimate.
Mar 30, 2011
2010
Walmart Inc. Annual Report, Year Ended Jan 31, 2010
Walmart's fiscal 2010 10-K (fiscal year ended January 31, 2010) shows a company that grew operating income faster than sales in a difficult year. Net sales rose 1.0% to $405.0 billion, held back by a $9.8 billion unfavorable currency impact in the International segment and price deflation in Walmart U.S. Operating income increased 5.1% to $23.95 billion, and diluted EPS from continuing operations rose to $3.72 from $3.35. Management's stated objective of growing operating income faster than sales was met at the consolidated level, though Sam's Club fell short, largely due to a $174 million restructuring charge tied to closing 10 clubs. U.S. comparable store sales declined 0.8%, with management attributing the drop to deflation in certain merchandise categories and lower fuel prices, even though customer traffic increased. Cash generation was strong: operating cash flow reached $26.2 billion and free cash flow was $14.1 billion, up from $11.6 billion. Management used that cash for $7.3 billion of share repurchases, $4.2 billion of dividends (a $1.09 per share payout), and roughly $12.2 billion of capital expenditures. The board also approved a fiscal 2011 dividend increase to $1.21 per share, an 11% rise. Return on investment held at 19.3%. For investors, the key items to watch are the risk factors and disclosures around litigation and the debt profile. The filing flags the Dukes gender discrimination class action, wage-and-hour class actions, and a federal hazardous-materials criminal investigation. Management says none of the environmental matters is expected to have a material effect, but it cannot estimate the Dukes exposure. Total long-term debt was $37.3 billion, and the company holds AA long-term credit ratings from S&P, Fitch and DBRS (Aa2 from Moody's). Guidance for fiscal 2011 calls for $13–15 billion in capital expenditures and 150–170 new U.S. units, plus more than 600 new International units.
Mar 30, 2010
2009
Walmart Inc. Annual Report, Year Ended Apr 1, 2009
Wal-Mart Stores, Inc. (WMT) reported fiscal 2009 (year ended January 31, 2009) net sales of $401.2 billion, up 7.2% year over year, with net income of $13.4 billion and diluted EPS of $3.39 (diluted EPS from continuing operations of $3.35). Growth came from store expansion, a 3.5% increase in U.S. comparable store sales, and acquisitions, partly offset by a $2.3 billion unfavorable foreign currency impact on the International segment. Walmart U.S. remains the core earnings engine, generating 63.7% of net sales and 82.3% of segment operating income. Consolidated operating income rose only 3.9%, lagging sales growth, because of higher utility and health benefit costs, a roughly $352 million pre-tax charge for settling 63 wage-and-hour class actions, and rising corporate transformation spending. Management pointed to a gross margin improvement to 23.7% from lower shrink and markdowns. Cash generation was strong. Operating cash flow from continuing operations rose to $23.1 billion and free cash flow to $11.6 billion, helped by lower capital expenditures as U.S. store openings slowed. Management used the cash mainly for dividends ($3.7 billion) and buybacks ($3.5 billion), and it raised the fiscal 2010 dividend 15% to $1.09 per share. The company suspended repurchases in October 2008 and resumed them in February 2009, with about $5.0 billion left on its $15.0 billion authorization. Long-term debt stood at $37.2 billion, the debt-to-capitalization ratio fell to 39.3%, and the company carries AA long-term and A-1+ commercial paper ratings from S&P. Key risks for investors include the Dukes gender discrimination class action, pending wage-and-hour litigation, a federal and state criminal hazardous-waste investigation, currency and emerging-market exposure, and the acquisition of Chile's D&S, which adds goodwill and future put-option obligations. Management expects continued expansion internationally, with 550 to 600 new international units planned for fiscal 2010, and projects capital expenditures of $12.5 to $13.5 billion.
Apr 1, 2009
2008
Walmart Inc. Annual Report, Year Ended Jan 31, 2008
Wal-Mart Stores, Inc. (WMT) reported fiscal 2008 (year ended January 31, 2008) net sales of $374.5 billion, up 8.6% year over year, with operating income of $22.0 billion (up 7.3%) and diluted EPS from continuing operations of $3.16 (net income per diluted share $3.13). Growth was driven largely by the International segment, which grew net sales 17.5% to $90.6 billion (about 24% of total), helped by a $4.5 billion favorable currency impact and acquisitions such as Seiyu and BCL. U.S. comparable store sales rose only 1.6%, and Wal-Mart Stores segment comparable sales grew just 1.0%, reflecting weak traffic, softness in home and apparel, and cannibalization from new stores. Operating income grew more slowly than sales, and ROI declined to 19.5% from 19.9%. Cash generation remained strong, with operating cash flow from continuing operations of $20.4 billion and free cash flow of $5.4 billion, up from $4.3 billion. Management is shifting capital toward international markets and away from U.S. store expansion: capital expenditures fell to $14.9 billion and fiscal 2009 planned unit growth is 620 units, 400 of them international. Shareholder returns were significant, with $7.7 billion of share repurchases and dividends of $0.88 per share (up 31%), and the board later raised the annual dividend to $0.95. Leverage rose, with total debt of $44.7 billion and the debt-to-capitalization ratio increasing to 40.9% from 38.8%, though credit ratings remain strong (S&P AA, Moody's Aa2). Key risks include ongoing litigation, most notably the Dukes gender discrimination class action covering about 1.6 million current and former female associates, large wage-and-hour class actions, and a federal criminal investigation under hazardous waste laws. The company's own disclosures flag the potential for these matters to be material, though management has not quantified a loss for most of them.
Mar 31, 2008
2007
Walmart Inc. Annual Report, Year Ended Jan 31, 2007
Wal-Mart Stores, Inc. (WMT) reported fiscal 2007 (year ended January 31, 2007) net sales of $345.0 billion, up 11.7% year over year, with income from continuing operations rising 6.7% to $12.2 billion and diluted EPS from continuing operations of $2.92 (diluted net income per share of $2.71 after $894 million of losses from discontinued operations, chiefly the German and South Korean exits). Growth was driven largely by acquisitions and consolidations (Seiyu, CARHCO, Sonae) and a $1.5 billion favorable currency impact, while U.S. comparable store sales slowed to 2.0% from 3.4% as management cited a difficult hurricane-recovery benchmark, softness in home and apparel, and cannibalization from new stores. Operating income grew 9.5%, below the 11.7% sales growth, which management acknowledged the International segment did not meet because of newly consolidated, lower-margin operations. Cash generation remained strong, with operating cash flow from continuing operations of $20.2 billion against $15.7 billion of capital expenditures, leaving room for $2.8 billion of dividends and $1.7 billion of share repurchases. Total assets reached $151.2 billion, and the balance sheet carries a working capital deficit typical of the business model, with current liabilities exceeding current assets by $5.2 billion. The company holds AA/Aa2 long-term ratings, and management plans roughly $17 billion of fiscal 2008 capital expenditures plus a dividend increase to $0.88 annualized. Investors should weigh the strong cash flow and dividend growth against several material risks disclosed in the filing: the Dukes gender discrimination class action covering about 1.6 million current and former female associates, multiple wage-and-hour class actions with large verdicts (Savaglio and Braun/Hummel), and an ongoing criminal investigation by the U.S. Attorney's Office into hazardous waste handling, for which the company states it cannot reasonably estimate a loss.
Mar 27, 2007
2006
Walmart Inc. Annual Report, Year Ended Jan 31, 2006
Wal-Mart Stores, Inc. (WMT) reported fiscal 2006 (year ended January 31, 2006) net sales of $312.4 billion, up 9.5%, and net income of $11.2 billion, up 9.4%, with diluted EPS of $2.68 versus $2.41 a year earlier. Growth was driven by the Wal-Mart Stores segment (67.2% of sales, 9.4% sales growth, 3.0% comparative store sales), the International segment (20.1% of sales, 11.4% growth, aided by $1.5 billion of favorable currency effects), and SAM'S CLUB (12.7% of sales, 7.2% growth). Operating income rose 8.4%, slower than sales, and the company acknowledged that the Wal-Mart Stores segment's operating margin slipped slightly, reflecting lower-margin food mix, rising transportation costs, and higher utility and advertising expenses. Return on assets fell to 8.9% from 9.3%, partly due to acquisition activity in the fourth quarter. Balance sheet and cash flow shifted toward leverage and expansion. Total assets rose 15% to $138.2 billion. Operating cash flow was $17.6 billion, while capital expenditures reached $14.6 billion, leaving limited free cash flow after dividends of $2.5 billion and buybacks of $3.6 billion. Long-term debt rose to $31.0 billion from $23.8 billion, and the debt-to-total-capitalization ratio increased to 42% from 39%, above management's roughly 40% target. Working capital was negative, with current liabilities exceeding current assets by $5.0 billion, a pattern typical of the company's inventory-driven model. Management guided fiscal 2007 capital expenditures to about $17.5 billion and announced a dividend increase to $0.67 per share annually. Investors should also weigh legal and regulatory exposure disclosed in the filing. The Dukes gender discrimination class action covers approximately 1.6 million current and former female associates, and the Savaglio meal-break case produced a jury verdict of roughly $172 million including punitive damages. Wage-and-hour class actions are numerous, and a federal criminal investigation under hazardous waste laws is ongoing. The company states it cannot estimate the potential loss from several of these matters, so the financial impact remains uncertain.
Mar 29, 2006
2005
Walmart Inc. Annual Report, Year Ended Jan 31, 2005
Wal-Mart Stores, Inc. (WMT) reported a strong fiscal 2005 (year ended January 31, 2005), with net sales up 11.3% to $285.2 billion and income from continuing operations up 15.9% to $10.3 billion (diluted EPS $2.41, versus $2.03 from continuing operations in fiscal 2004). Growth was driven by store expansion and International performance: the International segment's sales rose 18.3% to $56.3 billion and its operating income rose 26.1%, helped by Mexico, the United Kingdom, and a $3.2 billion favorable currency impact on sales. Wal-Mart Stores segment sales grew 10.1%, but comparative U.S. store sales slowed to 2.9% from 3.9%, which management attributed to a softer economy and higher fuel and utility costs for customers. Operating income grew 13.8%, ahead of sales growth, though the Wal-Mart Stores segment fell slightly short of that benchmark. Cash generation remained robust, with $15.0 billion of operating cash flow against $12.9 billion of capital expenditures. The company returned capital to shareholders through $4.5 billion of buybacks and $2.2 billion of dividends, and it approved a new $10.0 billion repurchase program and a dividend increase to $0.60 per share for fiscal 2006. Total debt rose to about $23.8 billion of long-term debt, with the debt-to-capitalization ratio at 39% against a target of about 40%. Return on assets was 9.3% and return on equity 22.1%. Investors should weigh several risks: a pending class-action gender discrimination suit (Dukes v. Wal-Mart) covering roughly 1.6 million current and former female Associates, with potentially material but currently unquantifiable liability; a broad set of wage-and-hour class actions; and an inventory-to-sales growth ratio that was affected by weaker-than-expected sales. Management also flagged that the upcoming S&P float adjustment could prompt index funds to sell a portion of their holdings. Fiscal 2006 capital spending is planned at about $14 billion.
Mar 31, 2005
2004-A
Walmart Inc. Annual Report (Amendment), Year Ended Jan 31, 2004
This filing is an amendment to Walmart's 2004 10-K, primarily focused on adding details regarding executive compensation, specifically non-compete agreements with post-termination payments and benefits. While the core financial performance of the fiscal year ending January 31, 2004, is not updated by this amendment, the disclosure provides insight into how Walmart structures its executive compensation and retention strategies. Investors can examine the substantial compensation packages, including base salary, incentive payments, and equity awards (stock options and restricted stock), awarded to top executives like H. Lee Scott, Jr. The amendment also clarifies the terms of covenants not to compete, which include continued salary payments and stock options for executives if employment is terminated by the company for reasons other than policy violation, aiming to ensure stability and prevent competitive actions by former key personnel.
Aug 26, 2004
2004
Walmart Inc. Annual Report, Year Ended Jan 31, 2004
Wal-Mart Stores, Inc. (WMT) reported a strong fiscal 2004 (year ended January 31, 2004). Net sales rose 12% to $256.3 billion, and income from continuing operations increased 13.3% to $8.9 billion, with diluted EPS from continuing operations of $2.03 (diluted net EPS $2.07). Growth was driven by domestic expansion (139 new Discount Stores, Supercenters and Neighborhood Markets plus 130 Discount Store-to-Supercenter conversions/relocations) and by the International segment, whose sales grew 16.6% and operating profit grew 18.6%. Gross margin improved slightly to 22.5% from 22.3%, helped by product mix and global sourcing, though apparel markdowns and higher insurance and advertising costs weighed on SG&A. The Wal-Mart Stores segment remains the core engine at 68% of sales, but its comparative store sales growth slowed to 3.9% from 5.7% amid a softer economy and weak apparel sales. Operating cash flow from continuing operations reached $15.9 billion, against capital expenditures of $10.3 billion, $5.0 billion in share repurchases and $1.6 billion in dividends. The company sold McLane for $1.5 billion and recorded a $150 million German deferred tax valuation allowance charge. Management plans roughly $12 billion of fiscal 2005 capital spending and raised the fiscal 2005 dividend to $0.52 per share, a 44% increase. Investors should weigh the company's scale and consistent profit growth against several risk factors disclosed in the filing: a federal grand jury immigration investigation, multiple class actions alleging off-the-clock work and gender discrimination (including the Dukes case), and environmental enforcement matters. Leverage is moderate, with debt at 38% of total capitalization against a historical target of about 40%, and the company holds AA/Aa2/AA long-term ratings.
Apr 9, 2004
2003
Walmart Inc. Annual Report, Year Ended Jan 31, 2003
Walmart's fiscal 2003 10-K (year ended January 31, 2003) shows a company still growing rapidly on both top and bottom lines. Net sales rose 12% to $244.5 billion, driven by domestic comparative store sales growth of 5% and continued expansion, including 192 new Supercenters, 43 new Wal-Mart discount stores, 18 Neighborhood Markets, and 115 International units opened, expanded or relocated. Net income increased 20.5% to $8.04 billion, or $1.81 per diluted share, with operating profit up 14.3% to $13.6 billion. Gross margin improved 32 basis points to 21.55%, driven by lower shrinkage, reduced markdowns and product mix, though management warns of ongoing pressure from rising food mix and LIFO costs. The balance sheet expanded to $94.7 billion in total assets, with shareholders' equity of $39.3 billion and a debt-to-total-capitalization ratio of 39.2%, in line with the company's roughly 40% target. Operating cash flow reached $12.5 billion against $9.4 billion in capital expenditures, leaving substantial free cash flow that funded $3.4 billion in share repurchases and $1.3 billion in dividends. The company has a working capital deficit of $2.1 billion and a current ratio of 0.9, which is typical for a high-turnover retailer that relies on trade payables and commercial paper. Management plans roughly $11.5 billion in fiscal 2004 capital spending and has raised the dividend 20% to $0.36 per share. Key risks flagged in the filing include rising insurance and healthcare costs, a sizable docket of wage-and-hour class actions across more than 30 states, the Dukes gender discrimination suit, and the Item Pricing litigation in Massachusetts. Growth is increasingly international, with International segment sales of $40.8 billion and operating income up 56%, aided by the ASDA acquisition in the UK, the Amigo purchase in Puerto Rico, and a stake in Japan's Seiyu that management may increase to 66.7%.
Apr 15, 2003
2002
Walmart Inc. Annual Report, Year Ended Jan 31, 2002
Walmart closed fiscal 2002 (year ended January 31, 2002) with net sales of $217.8 billion, up 14% from $191.3 billion, and net income of $6.671 billion, up 6.0% from $6.295 billion. Diluted EPS was $1.49, up from $1.40. Domestic comparative store sales rose 6%, driven by store expansion and a growing Supercenter base, which added 178 units in the year and brought the U.S. total to 1,066. Growth is increasingly driven by food, which carries lower margins: gross margin fell to 21.23% from 21.47%, and management expects further pressure as food's share of sales rises. Operating, selling, general and administrative expenses rose to 16.61% of sales from 16.49%, reflecting higher utility, insurance, and associate costs. Operating income grew about 5% to $12.1 billion, and the International segment, which includes ASDA, delivered the strongest segment operating profit growth of 31%. Balance sheet and cash flow remained solid. Operating cash flow reached $10.3 billion, against $8.4 billion in capital expenditures. The company issued $4.6 billion in long-term debt, repaid $3.5 billion, and repurchased $1.2 billion of stock while paying $1.2 billion in dividends. Debt to total capitalization was 38.4%, near management's roughly 40% target. Return on shareholders' equity declined to 20.1% from 22.0%, largely because equity grew faster than earnings, and total assets rose to $83.5 billion. Foreign currency translation was a $472 million drag on equity, and the company terminated $6.7 billion of net investment hedges for $1.1 billion in cash. Looking ahead, Walmart plans about $10.2 billion in fiscal 2003 capital expenditures, including roughly 180 to 185 new Supercenters and 120 to 130 international units. It also agreed to acquire 6.1% of Japan's Seiyu, with the option to reach 66.7%, and 35 Supermercado Amigo stores in Puerto Rico. Investors should watch margin compression from the food mix shift, rising insurance and utility costs, currency exposure in Mexico and Argentina, and the pending accounting change under SFAS 142, which is expected to add about $250 million to net income by no longer amortizing goodwill.
Apr 15, 2002
2001-A
Walmart Inc. Annual Report (Amendment), Year Ended Jan 31, 2001
Wal-Mart Stores, Inc. (WMT) reported its fiscal 2001 results (year ended January 31, 2001) in this amended 10-K/A, which was filed to include the full consolidated financial statements that were inadvertently omitted from the original filing. The company reported net sales of $191.3 billion, up 16% from $165.0 billion in fiscal 2000, driven by domestic and international expansion and a 5% domestic comparative store sales increase. Net income rose 17% to $6.3 billion, and diluted EPS increased to $1.40 from $1.20 (fiscal 2000 included a $0.04 cumulative accounting charge). Return on shareholders' equity was 22.0%, and the Company's quarterly dividend rose to $0.24 for the year, with a 17% increase to $0.28 announced for fiscal 2002. Growth was broad-based. The Wal-Mart Stores segment generated $121.9 billion in sales with operating income of $9.7 billion, while International sales reached $32.1 billion (about 17% of the total), reflecting the full-year contribution of ASDA in the UK and the acquisition of an additional 6% of Wal-Mart de Mexico. SAM'S Club sales were $26.8 billion, with a modest operating margin of 3.5%. Cash flow from operations rose to $9.6 billion, while capital spending was $8.0 billion and the Company planned about $9 billion in fiscal 2002 capex. The balance sheet expanded substantially after the ASDA acquisition: total assets reached $78.1 billion and shareholders' equity rose to $31.3 billion. Debt-to-total-capitalization was 41.6% versus a management target of about 40%, and the current ratio was 0.9. Key risks include foreign currency exposure from the international business, the increase in interest costs tied to acquisition borrowings, a 2001 gross margin that was held back by price rollbacks and a mix shift toward lower-margin food and international sales, and pending environmental and regulatory matters, though none is described as material.
Apr 17, 2001
2001
Walmart Inc. Annual Report, Year Ended Jan 31, 2001
Wal-Mart Stores, Inc. (WMT) reported fiscal 2001 (year ended January 31, 2001) net sales of $191.3 billion, up 16% from $165.0 billion in fiscal 2000, with a domestic comparative store sales increase of 5%. Net income rose 17% to $6.295 billion, and diluted EPS reached $1.40 versus $1.20 in fiscal 2000. Growth was driven by domestic expansion (167 new Supercenters, 41 Wal-Mart stores, 12 Neighborhood Markets) and the first full year of international operations, including the ASDA acquisition in the UK. The Wal-Mart Stores segment remained the core profit engine, with operating income up 11.5% to $9.7 billion at an unchanged 8.0% margin. The balance sheet expanded materially. Total assets grew to $78.1 billion from $70.3 billion, and shareholders' equity rose to $31.3 billion from $25.8 billion. Long-term debt declined to $12.5 billion from $13.7 billion, and the debt-to-total-capitalization ratio stood at 41.6% against a management target of about 40%. Operating cash flow increased to $9.6 billion, comfortably funding $8.0 billion of capital expenditures and $1.07 billion of dividends. Return on shareholders' equity was 22.0%. Current liabilities exceeded current assets, producing a current ratio of 0.9, which is typical for a high-turnover retailer that relies on commercial paper. Key risks include margin pressure from a rising mix of lower-margin food and international sales, management's expectation that gross margins will narrow, foreign currency exposure from its UK, German, Canadian and Mexican operations, and several environmental and regulatory matters, including a pending EPA penalty claim of about $5.6 million and a Connecticut state suit. For fiscal 2002, management plans roughly 40 new Wal-Mart stores, 170 to 180 Supercenters, 100 to 110 international units, and about $9 billion in capital expenditures, and it raised the dividend 17% to $0.28 per share.
Apr 10, 2001
2000
Walmart Inc. Annual Report, Year Ended Jan 31, 2000
Wal-Mart Stores, Inc. (WMT) reported record fiscal 2000 (year ended January 31, 2000) results, with net sales rising 20% to $165.0 billion and net income climbing 21% to $5.38 billion, or $1.20 per diluted share. Growth was driven by a 8% comparative store sales increase in the U.S., continued Supercenter expansion (721 Supercenters, up from 564), and the acquisition of ASDA Group PLC, the third largest U.K. retailer, for roughly $11 billion. Gross margin improved 0.4 percentage points, helped by a favorable sales mix, lower shrinkage and markdowns, and a LIFO benefit. Returns remained strong, with return on shareholders' equity of 22.9%. The ASDA deal materially changed the balance sheet and near-term cash profile. Total assets nearly doubled to $70.3 billion, long-term debt rose to $13.7 billion from $6.9 billion, and commercial paper of $3.3 billion was outstanding. Operating cash flow was $8.2 billion, but capital spending of $6.2 billion and the $10.4 billion acquisition outlay pushed the company to finance the deal with new debt. Management also flagged that the current ratio fell to 0.9 and that the debt-to-capitalization ratio stood at 46%, above its 40% target, which led it to pause share buybacks. The company raised its dividend 20% to $0.24 for fiscal 2001, its 28th consecutive annual increase. Looking ahead, Wal-Mart plans roughly $8 billion in capital expenditures for fiscal 2001, funded primarily from operating cash flow, along with about 165 new Supercenters and 40 new Wal-Mart stores. International expansion of 90 to 100 units is also planned. Risks include a $624 million jury verdict settled for less than that amount, a pending EPA penalty claim of $5.6 million, and foreign currency and interest-rate exposure tied to its growing international footprint, which now accounts for 13.8% of sales.
Apr 17, 2000
1999
Walmart Inc. Annual Report, Year Ended Jan 31, 1999
Wal-Mart Stores, Inc. (WMT) reported fiscal 1999 (year ended January 31, 1999) net sales of $137.6 billion, up 17% from $118.0 billion, driven by store expansion and a 9% domestic comparative store sales increase. Net income rose 26% to $4.43 billion, and diluted EPS reached $0.99 (restated for the two-for-one stock split payable April 19, 1999). Operating income before interest and taxes was $8.1 billion, and gross margin improved modestly as lower inventory levels reduced markdowns and shrink, even amid continued price rollbacks. Return on shareholders' equity was 22.4%, versus 19.8% a year earlier. Growth came from both domestic and international operations. The company opened 37 Wal-Mart discount stores, 123 Supercenters, and 8 SAM'S Clubs, and added 114 international units, including the Cifra acquisition in Mexico (fiscal 1998), the Wertkauf chain in Germany, and Korean and Interspar hypermarket units. International sales reached $12.2 billion, about 8.9% of total sales, and international operating profit rose to $551 million from $262 million. Cash flow from operations was $7.6 billion, which funded $3.7 billion in capital expenditures, $693 million in dividends, $855 million in acquisitions, and $1.2 billion in share repurchases, with no short-term borrowings needed for most of the year. Looking ahead, management plans roughly $4.9 billion in fiscal 2000 capital expenditures, funded primarily from operating cash flow, along with about 40 new Wal-Mart stores, 150 Supercenters, and 75 to 80 international units. The dividend was raised 29% to $0.20 per post-split share, the 27th consecutive annual increase, and the buyback authorization was increased to $2 billion. Year 2000 remediation is substantially complete at an estimated incremental cost of $27 million, with no significant issues detected in testing so far. Investors should note that the filing incorporates much of its financial detail by reference to the Annual Report to Shareholders.
Apr 19, 1999
1998
Walmart Inc. Annual Report, Year Ended Jan 31, 1998
Wal-Mart Stores, Inc.'s Form 10-K for the fiscal year ended January 31, 1998 shows a company still growing strongly on both top and bottom lines. Net sales rose 12% to $117.96 billion, driven by an expansion program and comparable store sales growth of 6%. Net income climbed 15% to $3.526 billion, and diluted EPS reached $1.56, up from $1.33. Return on shareholders' equity was 19.8%, and the company ended the year with $1.45 billion in cash, no short-term borrowings, and total assets of $45.4 billion. Growth came from both domestic and international expansion. Domestically, the company operated 1,921 discount stores, 441 Supercenters and 443 Sam's Clubs. International sales rose to about 6.4% of total sales, helped by the consolidation of a 51% controlling stake in Mexico's Cifra, the acquisition of 21 Wertkauf hypermarkets in Germany, and the purchase of the minority stake in its Brazilian joint venture. Those acquisitions, along with capital spending of $2.6 billion, were funded largely by operating cash flow of $7.1 billion, which also covered $611 million in dividends and $1.6 billion in share repurchases. Balance sheet and capital allocation signals were constructive. Long-term debt declined to $7.2 billion from $7.7 billion, and the company announced a plan to repurchase up to $2 billion of stock over 12 to 18 months along with a 15% dividend increase to $0.31 per share for fiscal 1999. Risks flagged in the filing include competitive pressure, inflation, currency fluctuations, and international exposure, while management reported no material pending legal proceedings. Year 2000 remediation was estimated at $12 million and expected to finish in fiscal 1999. Management planned about $4 billion in fiscal 1999 capital expenditures, to be funded primarily from operations.
Apr 23, 1998
1997-A
Walmart Inc. Annual Report (Amendment), Year Ended Jan 31, 1997
Wal-Mart Stores, Inc. reported strong fiscal 1997 results (year ended January 31, 1997). Net sales rose 12% to $104.9 billion, driven by expansion and a 5% comparative store sales increase. Net income grew 12% to $3.06 billion, or $1.33 per share, and return on shareholders' equity was 19.2%, down from 19.9% in fiscal 1996 as equity grew faster than earnings. Operating cash flow more than doubled to $5.9 billion, mainly from tighter inventory management, which allowed the company to fund $2.6 billion of capital expenditures, retire commercial paper, pay dividends, and end the year with $883 million in cash and no short-term borrowings. The balance sheet strengthened. Total assets reached $39.6 billion, long-term debt fell to $7.7 billion from $8.5 billion, and shareholders' equity rose to $17.1 billion. Minority interest jumped to $1.0 billion from $331 million, reflecting the formation of a real estate investment trust that raised $632 million. Management announced a plan to repurchase up to $2 billion of stock over 18 months and raised the fiscal 1998 dividend 29% to $.27 per share, while planning about $3 billion in fiscal 1998 capital spending, to be funded primarily from operating cash flow. International operations remain immaterial to consolidated results, though their sales growth outpaced the other formats. This filing is Amendment 1 to the original 10-K. It was filed to add the Report of Independent Auditors (Ernst & Young, dated March 21, 1997), which had been inadvertently omitted, and it amends Items 8 and 14 in their entirety. The core financial information is incorporated by reference from the Annual Report to Shareholders.
Jun 20, 1997
1997
Walmart Inc. Annual Report, Year Ended Jan 31, 1997
Wal-Mart Stores, Inc. reported fiscal 1997 (year ended January 31, 1997) net sales of $104.9 billion, up 12% from $93.6 billion, with comparative store sales up 5%. Net income rose 12% to $3.06 billion, or $1.33 per share, from $2.74 billion, or $1.19 per share. Operating margin pressure was modest: cost of sales rose 0.2 percentage points, partly from one-time third-quarter markdowns tied to a decision to trim merchandise assortments, while operating, selling and G&A expenses as a percentage of sales were flat. Return on shareholders' equity was 19.2%, down from 19.9%, and return on assets was 7.9%, up slightly from 7.8%. The balance sheet strengthened considerably. Operating cash flow reached $5.9 billion, up from $2.4 billion, driven mainly by tighter inventory management that reduced unit inventory levels even as sales grew. After $2.6 billion in capital expenditures, the company generated about $3.3 billion of free cash flow, which it used to eliminate short-term borrowings, retire $2.5 billion of commercial paper, and pay dividends. Long-term debt declined to $7.7 billion from $8.5 billion, and shareholders' equity increased to $17.1 billion from $14.8 billion. Cash and equivalents stood at $883 million at year-end. Looking ahead, management announced a plan to repurchase up to $2 billion of common stock over the next 18 months and raised the fiscal 1998 dividend 29% to $0.27 per share. Planned expansion for fiscal 1998 includes about 50 new Wal-Mart stores, 100 Supercenters, 5 to 10 Sam's Clubs, and 30 to 35 international units, with total capital expenditures of roughly $3 billion, to be financed primarily from operating cash flow. The filing also notes that international operations remain immaterial to consolidated results, though international sales grew to about 4.8% of total sales, and that the company is not party to any material pending legal proceedings.
Apr 21, 1997
1996
Walmart Inc. Annual Report, Year Ended Jan 31, 1996
Wal-Mart Stores, Inc. (WMT) reported fiscal 1996 (year ended January 31, 1996) net sales of $93.6 billion, up 13% from $82.5 billion in fiscal 1995, driven by an expansion program that added 92 Wal-Mart stores, 92 Supercenters, 9 Sam's Clubs and 50 international units, plus a 4% comparable store sales increase. Net income rose 2% to $2.74 billion ($1.19 per share) from $2.68 billion, a slower pace than sales growth. Operating, selling, and G&A expenses rose as a percentage of sales, and the company's margins were pressured by a mix shift toward lower-markup Wal-Mart stores and away from higher-cost-structure Sam's Clubs, a trend management attributed to its low-price strategy. Return on shareholders' equity fell to 21.5% from 24.9%, reflecting the expansion-driven growth in the equity base. The balance sheet grew substantially to $37.5 billion in total assets from $32.8 billion, with long-term debt rising to $8.5 billion and shareholders' equity reaching $14.8 billion. The debt-plus-capital-lease-to-equity ratio was 0.74:1, slightly improved from 0.77:1 a year earlier. Operating cash flow was $2.4 billion, against capital expenditures of $3.6 billion, so the company borrowed $1 billion of long-term debt and relied on short-term commercial paper to fund the gap. Management plans capital expenditures of up to $3.5 billion in fiscal 1997 and says it expects to finance this primarily from operating cash flow. The company ended the year with 2,667 total U.S. store units and 675,000 associates, and it has announced plans for 60 to 70 new Wal-Mart stores, 100 to 110 Supercenters, and 10 new Sam's Clubs domestically in fiscal 1997. The company reports no material pending legal proceedings. Investors should weigh the strong unit growth and market leadership against a moderating return on equity, rising leverage, and the currency risk from the Mexican peso devaluation, which generated a $412 million foreign currency translation adjustment in fiscal 1996.
Apr 23, 1996
1995
Walmart Inc. Annual Report, Year Ended Jan 31, 1995
Wal-Mart Stores, Inc. reported fiscal 1995 (year ended January 31, 1995) net sales of $82.5 billion, up 22% from $67.3 billion in fiscal 1994, with comparable store sales up 7%. Net income rose 15% to $2.68 billion, and earnings per share reached $1.17, up from $1.02. Growth was driven by 111 new Wal-Mart stores, 6 new Supercenters, 22 new Sam's Clubs, the conversion or expansion of 69 stores into Supercenters, and the acquisition of 122 Woolco stores in Canada. The Company ended the year with 1,990 Wal-Mart stores, 428 Sam's Clubs, and 143 Supercenters, and it describes itself as America's largest retailer. The balance sheet expanded considerably to fund this growth. Total assets rose to $32.8 billion from $26.4 billion, and long-term debt climbed to $7.9 billion from $6.2 billion. The debt-plus-capital-lease-to-equity ratio increased to 0.77:1 from 0.75:1, and shareholders' equity grew to $12.7 billion. Capital expenditures were $3.7 billion, and planned fiscal 1996 capital spending is about $4 billion. Operating cash flow was $2.9 billion, which covered the bulk of the investment needs alongside new borrowings. Key risks flagged in the filing include rising interest costs (interest on debt rose to $520 million from $331 million), a 1995 Mexican peso devaluation that cut shareholders' equity by about $235 million through translation adjustments, and a planned slowdown of Mexican expansion. Management expects continued expansion in fiscal 1996 with 90 to 100 new Wal-Mart stores, 12 new Supercenters, and nine new Sam's Clubs, and it states that it foresees no difficulty funding working capital and expansion needs.
Apr 27, 1995