01—Abstract
Summary
Summary of the 10-K filed March 30, 2018. Cited figures are marked; the original filing is the authoritative source.
Walmart Inc.'s Form 10-K for the fiscal year ended January 31, 2018, highlights a year of robust revenue growth, reaching $500.3 billiona, 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.
02—Key points
Key Highlights
- Total revenues reached $500.3 billion for the fiscal year ended January 31, 2018, marking a 3.0% increase.
- Net sales grew by 3.0% to $495.8 billion, driven by comparable sales growth across segments and eCommerce initiatives.
- Significant investments are being made in eCommerce and technology, including the acquisition of Jet.com and the development of the Store No. 8 incubator.
- Capital expenditures shifted focus towards remodels, eCommerce, and technology, with a reduced emphasis on new store openings.
- The company is navigating increased operating expenses, partly due to strategic investments like associate wage increases and specific charges related to restructuring and discontinued projects.
- Walmart returned $8.3 billion to shareholders through share repurchases and $6.1 billion through dividends in fiscal 2018.
- The Tax Cuts and Jobs Act of 2017 had a notable impact, leading to a provisional tax benefit and changes in the effective tax rate.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2018, Walmart Inc. kept $0.02.
- Revenue$500.34B100.0%
- Cost of revenue−$373.40B74.6%
- Gross profit$126.95B25.4%
- Operating costs−$106.51B21.3%
- Operating income$20.44B4.1%
- Interest, other & tax−$10.57B2.1%
- Net income$9.86B2.0%
Where FY2018 revenue went
$500.34B- Cost of revenue: $373.40B, 75% of revenue
- SG&A: $106.51B, 21% of revenue
- Net income: $9.86B, 2.0% of revenue
- Interest, other & tax: $10.57B, 2.1% of revenue
Kept 2.0% as net incomeNet income $9.86B · 2.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2018filed March 30, 2018Financial Statements
FY2018 against FY2017
| Line item | FY2018FY2017 | Change |
|---|---|---|
| Revenue | $500.34B$485.87B | +3.0% |
| Cost of Revenue | $373.40B$361.26B | +3.4% |
| Gross Profit | $126.95B$124.62B | +1.9% |
| SG&A Expenses | $106.51B$101.85B | +4.6% |
| Operating Income | $20.44B$22.76B | −10.2% |
| Interest Expense | $1.98B$2.04B | −3.2% |
| Net Income | $9.86B$13.64B | −27.7% |
| EPS (Basic) | $1.10$1.47 | −25.2% |
| EPS (Diluted) | $1.09$1.46 | −25.1% |
| Shares Outstanding (Basic) | 8.98B9.30B | −3.4% |
| Shares Outstanding (Diluted) | 9.03B9.34B | −3.3% |
05—Questions
Frequently Asked Questions
What were Walmart's key financial performance indicators for the fiscal year ended January 31, 2018?
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.
How is Walmart investing in its future growth and strategy?
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.
What is the impact of the Tax Cuts and Jobs Act of 2017 on Walmart's financial results?
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.
How did Walmart return capital to shareholders during fiscal year 2018?
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.
06—Continue