10-KPeriod: FY2008

Walmart Inc. Annual Report, Year Ended Jan 31, 2008

Filed March 31, 2008For Securities:WMT

Summary

Walmart Inc.'s 2008 10-K filing reveals a company with significant global reach, operating across three main segments: Wal-Mart Stores, Sam's Club, and International. The fiscal year ending January 31, 2008, saw the company achieve substantial net sales of $374.5 billion, underscoring its dominant position in the retail landscape. The company's strategy remains focused on its "Every Day Low Prices" (EDLP) philosophy, aiming to build customer trust through consistent value. Expansion and operational efficiency are key themes, with detailed breakdowns of store counts and square footage across its various formats (Supercenters, Discount Stores, Neighborhood Markets) in the U.S. and numerous international markets. The International segment, in particular, represents a substantial and growing portion of the business, indicating a strategic push for global growth.

Financial Highlights

31 data points
Beta

Revenue

$377.02B

24.6% Gross Margin

Net Income

$12.73B

3.4% Net Margin

EPS (Diluted)

$1.04

Free Cash Flow

$5.71B

Financial Statements
Beta
Revenue$377.02B
Cost of Revenue$284.14B
Gross Profit$92.89B
SG&A Expenses$70.93B
Operating Income$21.95B
Interest Expense$1.86B
Net Income$12.73B
EPS (Basic)$1.04
EPS (Diluted)$1.04
Shares Outstanding (Basic)12.20B
Shares Outstanding (Diluted)12.22B

Key Highlights

  • 1Total net sales for the fiscal year ended January 31, 2008, reached $374.5 billion, demonstrating Walmart's massive scale.
  • 2The company operates through three primary segments: Wal-Mart Stores (64.0% of sales), Sam's Club (11.8% of sales), and International (24.2% of sales).
  • 3Walmart maintained its 'Every Day Low Prices' (EDLP) strategy, a core tenet of its business model to attract and retain customers.
  • 4The Wal-Mart Stores segment in the U.S. includes Supercenters, Discount Stores, and Neighborhood Markets, with significant store counts in each format.
  • 5The International segment showed robust growth, operating in 12 countries plus Puerto Rico, highlighting a key area of expansion and revenue generation.
  • 6The company actively engaged in share repurchases, with a new $15.0 billion program authorized, indicating a commitment to returning capital to shareholders.

Frequently Asked Questions

Walmart's primary business strategy revolves around its 'Every Day Low Prices' (EDLP) philosophy. This approach aims to consistently offer low prices on a wide assortment of quality merchandise to build customer trust and drive sales across all its segments.

Walmart's revenue is diversified across three main segments: Wal-Mart Stores (64.0% of net sales), International (24.2% of net sales), and Sam's Club (11.8% of net sales) for the fiscal year ended January 31, 2008. This indicates a significant reliance on its core U.S. retail operations but also a substantial and growing contribution from its international ventures.

Key risks highlighted include general economic conditions both domestically and internationally, impediments to expansion in the U.S. and internationally, intense competition from other retailers, risks associated with its global supply chain and product safety, labor issues including attracting and retaining qualified employees, and legal proceedings, particularly large-scale discrimination lawsuits like 'Dukes v. Wal-Mart Stores, Inc.'

Walmart is actively engaged in returning capital to shareholders through share repurchases. During the fourth quarter of fiscal year 2008, the company purchased over 50 million shares under a new $15.0 billion share repurchase program authorized in June 2007, indicating a commitment to managing its capital structure and rewarding investors.