01—Abstract
Summary
Summary of the 10-K filed March 19, 2021. Cited figures are marked; the original filing is the authoritative source.
Walmart Inc. reported strong performance for the fiscal year ended January 31, 2021, with total revenues reaching $559.2 billiona, 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.
02—Key points
Key Highlights
- Total revenues reached $559.2 billion, an increase of 6.7% year-over-year, driven by strong comparable sales growth in Walmart U.S. and Sam's Club.
- COVID-19 pandemic accelerated eCommerce growth, with eCommerce sales contributing significantly to comparable sales across segments.
- Launched Walmart+ membership program offering omni-channel benefits to customers.
- Generated $36.1 billion in net cash provided by operating activities and $25.8 billion in free cash flow.
- Continued strategic capital allocation towards eCommerce, technology, and supply chain, while reducing new store openings.
- Returned significant capital to shareholders through $6.1 billion in dividends and $2.6 billion in share repurchases.
- Experienced an increase in operating income to $22.5 billion, driven by higher net sales and improved gross profit rate.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Walmart Inc. kept $0.02.
- Revenue$555.23B100.0%
- Cost of revenue−$420.31B75.7%
- Gross profit$134.92B24.3%
- Operating costs−$112.37B20.2%
- Operating income$22.55B4.1%
- Interest, other & tax−$8.84B1.6%
- Net income$13.71B2.5%
Where FY2021 revenue went
$555.23B- Cost of revenue: $420.31B, 76% of revenue
- SG&A: $116.29B, 21% of revenue
- Net income: $13.71B, 2.5% of revenue
- Interest, other & tax: $8.84B, 1.6% of revenue
Kept 2.5% as net incomeNet income $13.71B · 2.5%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed March 19, 2021Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $555.23B$519.93B | +6.8% |
| Cost of Revenue | $420.31B$394.61B | +6.5% |
| Gross Profit | $134.92B$125.32B | +7.7% |
| SG&A Expenses | $116.29B$108.79B | +6.9% |
| Operating Income | $22.55B$20.57B | +9.6% |
| Interest Expense | $1.98B$2.26B | −12.6% |
| Net Income | $13.71B$14.88B | −7.9% |
| EPS (Basic) | $1.59$1.74 | −8.6% |
| EPS (Diluted) | $1.58$1.73 | −8.5% |
| Shares Outstanding (Basic) | 8.49B8.55B | −0.7% |
| Shares Outstanding (Diluted) | 8.54B8.60B | −0.7% |
05—Questions
Frequently Asked Questions
How did the COVID-19 pandemic impact Walmart's financial performance?
The COVID-19 pandemic significantly accelerated Walmart's eCommerce growth and omni-channel initiatives, leading to increased overall net sales and strong comparable sales growth. However, it also resulted in incremental operating costs of $4.0 billion during fiscal 2021, including expenses for associate safety, bonuses, and enhanced cleaning practices.
What are Walmart's key strategic priorities for growth?
Walmart's strategic priorities include focusing on strong, efficient growth by increasing comparable store and club sales, accelerating eCommerce sales growth, and expanding omni-channel initiatives, while slowing the rate of new store and club openings. Key investments are directed towards eCommerce, technology, supply chain improvements, and store remodels.
How did Walmart manage its capital allocation and shareholder returns during the fiscal year?
Walmart continued its strategy of allocating capital towards customer-facing initiatives and omni-channel capabilities. The company generated substantial free cash flow, which supported shareholder returns through $6.1 billion in dividend payments and $2.6 billion in share repurchases. A new $20.0 billion share repurchase program was also approved.
What were the key financial results for the fiscal year ended January 31, 2021?
For the fiscal year ended January 31, 2021, Walmart reported total revenues of $559.2 billion, a 6.7% increase from the prior year. Net sales increased by 6.8% to $555.2 billion. Operating income rose to $22.5 billion, and consolidated net income was $13.7 billion, resulting in diluted EPS of $4.75.
06—Continue