10-KPeriod: FY2023

Walmart Inc. Annual Report, Year Ended Jan 31, 2023

Filed March 17, 2023For Securities:WMT

Summary

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 billion, 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 billion 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.

Financial Highlights

52 data points
Beta

Revenue

$605.88B

23.5% Gross Margin

Net Income

$11.68B

1.9% Net Margin

EPS (Diluted)

$1.42

Total Assets

$243.20B

Cash & Equivalents

$8.63B

Free Cash Flow

$11.98B

Financial Statements
Beta
Revenue$605.88B
Cost of Revenue$463.72B
Gross Profit$142.16B
SG&A Expenses$127.14B
Operating Income$20.43B
Interest Expense$1.79B
Net Income$11.68B
EPS (Basic)$1.43
EPS (Diluted)$1.42
Shares Outstanding (Basic)8.17B
Shares Outstanding (Diluted)8.20B

Key Highlights

  • 1Total 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%).
  • 2Walmart U.S. remains the largest segment, contributing 69% of total net sales, and demonstrates consistent comparable sales growth.
  • 3Sam's Club showed significant strength with a 14.6% increase in comparable sales, benefiting from membership growth and increased average ticket.
  • 4Net 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.
  • 5Capital expenditures increased to $16.9 billion, with a focus on supply chain, omnichannel initiatives, and technology investments.
  • 6Free cash flow was $12.0 billion, an increase from $11.1 billion in the prior year, demonstrating operational cash generation.
  • 7The company continued its commitment to shareholder returns, paying $6.1 billion in dividends and repurchasing $9.9 billion in stock.

Frequently Asked Questions

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.

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.

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.

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'.

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.