01—Abstract
Summary
Summary of the 10-K filed March 28, 2019. Cited figures are marked; the original filing is the authoritative source.
Walmart Inc. concluded its fiscal year ended January 31, 2019, with a consolidated revenue of $514.4 billiona, 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 billionb. 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 billionc 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.
02—Key points
Key Highlights
- Total revenues reached $514.4 billion, a 2.8% increase year-over-year, driven by growth in Walmart U.S. and International segments.
- Acquisition of a majority stake in Flipkart for $16 billion, signaling a significant investment in the Indian eCommerce market.
- Divestiture of 80% of Walmart Brazil resulted in a $4.8 billion pre-tax loss.
- Walmart U.S. comparable sales increased by 3.7%, with eCommerce contributing 1.3% to this growth.
- Sam's Club comparable sales saw a 5.4% increase, with eCommerce contributing 0.9% to this growth.
- Operating expenses as a percentage of net sales decreased by 48 basis points, indicating improved operational efficiency.
- Capital expenditures totaled $10.3 billion, with a strategic shift towards eCommerce, technology, and supply chain investments.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2019, Walmart Inc. kept $0.01.
- Revenue$514.40B100.0%
- Cost of revenue−$385.30B74.9%
- Gross profit$129.10B25.1%
- Operating costs−$107.15B20.8%
- Operating income$21.96B4.3%
- Interest, other & tax−$15.29B3.0%
- Net income$6.67B1.3%
Where FY2019 revenue went
$514.40B- Cost of revenue: $385.30B, 75% of revenue
- SG&A: $107.15B, 21% of revenue
- Net income: $6.67B, 1.3% of revenue
- Interest, other & tax: $15.29B, 3.0% of revenue
Kept 1.3% as net incomeNet income $6.67B · 1.3%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2019filed March 28, 2019Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Revenue | $514.40B$500.34B | +2.8% |
| Cost of Revenue | $385.30B$373.40B | +3.2% |
| Gross Profit | $129.10B$126.95B | +1.7% |
| SG&A Expenses | $107.15B$106.51B | +0.6% |
| Operating Income | $21.96B$20.44B | +7.4% |
| Interest Expense | $1.98B$1.98B | −0.2% |
| Net Income | $6.67B$9.86B | −32.4% |
| EPS (Basic) | $0.76$1.10 | −30.7% |
| EPS (Diluted) | $0.75$1.09 | −31.1% |
| Shares Outstanding (Basic) | 8.79B8.98B | −2.2% |
| Shares Outstanding (Diluted) | 8.84B9.03B | −2.2% |
05—Questions
Frequently Asked Questions
What was Walmart's overall financial performance in fiscal year 2019?
Walmart reported total revenues of $514.4 billion for the fiscal year ended January 31, 2019, an increase of 2.8% compared to the prior fiscal year. Net sales also increased by 2.9% to $510.3 billion. While the Walmart U.S. and International segments showed revenue growth, Sam's Club experienced a slight decrease in net sales.
What were the major strategic initiatives undertaken by Walmart during fiscal year 2019?
The most significant strategic move was the acquisition of a majority stake in Flipkart, an Indian eCommerce marketplace, for $16 billion. This reflects Walmart's commitment to expanding its global digital presence. The company also continued to invest in its omni-channel strategy, integrating its physical stores with its eCommerce platforms through services like grocery pickup and delivery. Additionally, Walmart divested 80% of its stake in Walmart Brazil, which resulted in a significant financial impact.
How did Walmart manage its expenses and profitability?
Walmart demonstrated operational discipline by reducing its operating, selling, general, and administrative expenses as a percentage of net sales by 48 basis points in fiscal year 2019. This was attributed to strong sales performance and productivity improvements, partially offset by increased investments in eCommerce and technology.
What is the outlook for capital expenditures and investments?
Walmart allocated approximately $10.3 billion in capital expenditures for fiscal year 2019, with a strategic shift towards eCommerce, technology, and supply chain improvements, while reducing investments in new store openings. The company projected similar capital expenditures of around $11.0 billion for fiscal year 2020, continuing this focus.
06—Continue