Summary
Walmart Inc. reported a strong first quarter for fiscal year 2013 (ending April 29, 2012), with net sales increasing by 8.6% to $112.3 billion compared to the prior year. This growth was driven by an expansion in retail square footage, contributions from acquisitions, and positive comparable store sales. The company demonstrated effective expense management, with operating expenses growing at a slower rate than net sales, leading to an 8.3% increase in operating income. Despite a slight decrease in the gross profit rate due to strategic price investments to offset cost inflation, Walmart generated robust operating cash flow of $5.4 billion. Free cash flow was a significant positive at $3.1 billion, a marked improvement from the prior year's negative figure, reflecting better inventory management and strong operational performance. The company also continued to return value to shareholders through dividends, increasing the annual dividend by 9% to $1.59 per share, and actively engaging in share repurchases.
Financial Highlights
48 data points| Revenue | $112.90B |
| Cost of Revenue | $85.14B |
| Gross Profit | $27.76B |
| SG&A Expenses | $21.45B |
| Operating Income | $6.39B |
| Interest Expense | $503.00M |
| Net Income | $3.74B |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 10.23B |
| Shares Outstanding (Diluted) | 10.28B |
Key Highlights
- 1Consolidated net sales grew 8.6% year-over-year to $112.3 billion, driven by U.S. and International segments, with the latter showing particularly strong growth (15.0%).
- 2Operating income increased by 8.3% to $6.4 billion, indicating effective cost management, though the gross profit rate slightly decreased to 24.1% due to price investments.
- 3The company generated a strong $5.4 billion in cash flow from operating activities, a substantial increase from the previous year, and achieved positive free cash flow of $3.1 billion.
- 4Walmart U.S. comparable store sales increased by 4.2%, and Walmart International saw strong comparable sales growth in most countries.
- 5Shareholder returns were prioritized with a 9% increase in the quarterly dividend to $0.3975 per share, and $1.6 billion was spent on share repurchases during the quarter.
- 6The company continued its strategic capital expenditures, with payments for property and equipment totaling $2.4 billion, primarily for new store growth and remodels.