01—Abstract
Summary
Summary of the 10-K filed March 17, 2023. Cited figures are marked; the original filing is the authoritative source.
Walmart Inc.'s annual report for the fiscal year ended January 31, 2023, highlights a year of solid revenue growth driven by strong comparable sales across its U.S. and Sam's Club segments.
Total revenues reached $611.3 billiona, a 6.7% increase year-over-year, reflecting continued consumer demand even amidst inflationary pressures. The company demonstrated resilience in its core U.S. operations, with Walmart U.S. comparable sales up 7.0%. Sam's Club also showed robust performance with a 14.6% comparable sales increase, boosted by membership growth.
Despite the top-line growth, net income decreased to $11.3 billionb from $13.9 billion in the prior year, largely due to significant opioid-related legal settlement charges totaling $3.3 billion and other restructuring costs. The company continues to invest heavily in its omnichannel strategy, supply chain, and technology to enhance customer experience and drive future growth. While facing operational headwinds like higher inventory costs and inflation, Walmart remains committed to its strategy of everyday low prices and disciplined cost management, positioning itself for continued relevance in a dynamic retail landscape.
02—Key points
Key Highlights
- Total revenues grew 6.7% to $611.3 billion, driven by strong comparable sales in Walmart U.S. (7.0%) and Sam's Club (14.6%).
- Walmart U.S. remains the largest segment, contributing 69% of total net sales, and demonstrates consistent comparable sales growth.
- Sam's Club showed significant strength with a 14.6% increase in comparable sales, benefiting from membership growth and increased average ticket.
- Net income declined to $11.3 billion from $13.9 billion, impacted by $3.3 billion in charges related to opioid-related legal settlements and restructuring costs.
- Capital expenditures increased to $16.9 billion, with a focus on supply chain, omnichannel initiatives, and technology investments.
- Free cash flow was $12.0 billion, an increase from $11.1 billion in the prior year, demonstrating operational cash generation.
- The company continued its commitment to shareholder returns, paying $6.1 billion in dividends and repurchasing $9.9 billion in stock.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Walmart Inc. kept $0.02.
- Revenue$605.88B100.0%
- Cost of revenue−$463.72B76.5%
- Gross profit$142.16B23.5%
- Operating costs−$121.73B20.1%
- Operating income$20.43B3.4%
- Interest, other & tax−$8.75B1.4%
- Net income$11.68B1.9%
Where FY2023 revenue went
$605.88B- Cost of revenue: $463.72B, 77% of revenue
- SG&A: $127.14B, 21% of revenue
- Net income: $11.68B, 1.9% of revenue
- Interest, other & tax: $8.75B, 1.4% of revenue
Kept 1.9% as net incomeNet income $11.68B · 1.9%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed March 17, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $605.88B$567.76B | +6.7% |
| Cost of Revenue | $463.72B$429.00B | +8.1% |
| Gross Profit | $142.16B$138.76B | +2.4% |
| SG&A Expenses | $127.14B$117.81B | +7.9% |
| Operating Income | $20.43B$25.94B | −21.3% |
| Interest Expense | $1.79B$1.67B | +6.8% |
| Net Income | $11.68B$13.67B | −14.6% |
| EPS (Basic) | $1.43$1.63 | −12.3% |
| EPS (Diluted) | $1.42$1.62 | −12.3% |
| Shares Outstanding (Basic) | 8.17B8.38B | −2.4% |
| Shares Outstanding (Diluted) | 8.20B8.41B | −2.5% |
05—Questions
Frequently Asked Questions
What was Walmart's overall financial performance in fiscal year 2023?
Walmart reported total revenues of $611.3 billion, an increase of 6.7% compared to the prior year, driven by strong comparable sales growth in its key segments. However, net income decreased to $11.3 billion from $13.9 billion, primarily due to significant charges related to opioid litigation settlements and business restructuring.
How did the different segments perform?
The Walmart U.S. segment saw a 6.9% increase in net sales and a 7.0% rise in comparable sales. Sam's Club experienced a 14.7% increase in net sales and a 14.6% rise in comparable sales. The Walmart International segment's net sales were flat year-over-year, impacted by divestitures and currency fluctuations, though comparable sales in international markets were positive.
What were the major factors impacting Walmart's profitability?
Profitability was impacted by several factors, including higher inventory costs and inflation, which affected merchandise costs. A significant drag on net income was the provision for opioid-related legal settlements, totaling $3.3 billion, along with $0.8 billion in restructuring charges for the Walmart International segment.
What is Walmart's strategy for future growth?
Walmart continues to focus on its omnichannel strategy, investing in technology, supply chain automation, and customer-facing initiatives. This includes expanding services like Walmart+ and leveraging its vast store network for fulfillment and customer convenience to drive 'strong, efficient growth'.
How is Walmart managing its capital?
The company allocated capital expenditures of $16.9 billion, prioritizing technology, supply chain, and customer-facing initiatives over new store openings. Walmart also returned significant capital to shareholders through $6.1 billion in dividends and $9.9 billion in share repurchases, demonstrating a commitment to shareholder returns.
06—Continue