10-KPeriod: FY2018

Walmart Inc. Annual Report, Year Ended Jan 31, 2018

Filed March 30, 2018For Securities:WMT

Summary

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.

Financial Highlights

52 data points
Beta

Revenue

$500.34B

25.4% Gross Margin

Net Income

$9.86B

2.0% Net Margin

EPS (Diluted)

$1.09

Total Assets

$204.52B

Cash & Equivalents

$6.76B

Free Cash Flow

$18.29B

Financial Statements
Beta
Revenue$500.34B
Cost of Revenue$373.40B
Gross Profit$126.95B
SG&A Expenses$106.51B
Operating Income$20.44B
Interest Expense$1.98B
Net Income$9.86B
EPS (Basic)$1.10
EPS (Diluted)$1.09
Shares Outstanding (Basic)8.98B
Shares Outstanding (Diluted)9.03B

Key Highlights

  • 1Total revenues reached $500.3 billion for the fiscal year ended January 31, 2018, marking a 3.0% increase.
  • 2Net sales grew by 3.0% to $495.8 billion, driven by comparable sales growth across segments and eCommerce initiatives.
  • 3Significant investments are being made in eCommerce and technology, including the acquisition of Jet.com and the development of the Store No. 8 incubator.
  • 4Capital expenditures shifted focus towards remodels, eCommerce, and technology, with a reduced emphasis on new store openings.
  • 5The company is navigating increased operating expenses, partly due to strategic investments like associate wage increases and specific charges related to restructuring and discontinued projects.
  • 6Walmart returned $8.3 billion to shareholders through share repurchases and $6.1 billion through dividends in fiscal 2018.
  • 7The Tax Cuts and Jobs Act of 2017 had a notable impact, leading to a provisional tax benefit and changes in the effective tax rate.

Frequently Asked Questions

Walmart reported total revenues of $500.3 billion and net sales of $495.8 billion, representing a 3.0% increase in both categories compared to the previous fiscal year. The company also saw growth in comparable sales across its U.S. segments.

Walmart is significantly investing in its omnichannel strategy, focusing on eCommerce and technology. This includes initiatives like growing online grocery pickup locations, enhancing digital platforms, and strategic investments in technology and supply chain capabilities. The company also acquired Jet.com and launched a tech incubator, Store No. 8.

The Tax Cuts and Jobs Act of 2017 led to a reduction in the U.S. statutory tax rate. Walmart recorded a provisional net tax benefit of $0.2 billion related to the Act, primarily from the remeasurement of deferred tax assets and liabilities due to the lower tax rate and a one-time transition tax on accumulated foreign earnings. The company is still assessing the full impact and may make adjustments in the future.

Walmart returned a significant amount of capital to shareholders through share repurchases and dividends. The company repurchased $8.3 billion of its common stock and paid $6.1 billion in dividends during fiscal year 2018.