Summary
Walmart Inc.'s first quarter fiscal year 2023 report (ending April 30, 2022) shows a modest increase in total revenues, reaching $141.6 billion, up 2.4% year-over-year. This growth was primarily driven by strong comparable sales in the U.S. segments (Walmart U.S. and Sam's Club), benefiting from higher inflation impacting average ticket prices, though transaction growth was relatively flat for Walmart U.S. However, consolidated net income saw a significant decline of 25.4% to $2.1 billion, leading to diluted EPS of $0.74, down from $0.97 in the prior year. This decline was influenced by a lower gross profit margin due to increased supply chain costs and product mix shifts, as well as higher operating expenses, particularly wage costs in the U.S. The company's cash flow from operations turned negative, at $(3.8) billion, a substantial decrease from the prior year's positive $2.9 billion. This was largely attributed to increased inventory costs, lower operating income, and the timing of payments. Consequently, free cash flow was a negative $(7.3) billion. Despite these challenges, Walmart continued its strategic capital allocation, increasing investments in supply chain, customer-facing initiatives, and technology. The company also reaffirmed its liquidity position and its ability to fund operations, dividends, and share repurchases.
Financial Highlights
49 data points| Revenue | $140.29B |
| Cost of Revenue | $106.85B |
| Gross Profit | $33.44B |
| SG&A Expenses | $29.40B |
| Operating Income | $5.32B |
| Interest Expense | $372.00M |
| Net Income | $2.05B |
| EPS (Basic) | $0.25 |
| EPS (Diluted) | $0.25 |
| Shares Outstanding (Basic) | 8.26B |
| Shares Outstanding (Diluted) | 8.29B |
Key Highlights
- 1Total revenues increased by 2.4% to $141.6 billion, driven by comparable sales growth in U.S. segments.
- 2Consolidated net income decreased by 25.4% to $2.1 billion, with diluted EPS falling to $0.74 from $0.97.
- 3Gross profit margin declined by 87 basis points due to higher supply chain costs and product mix.
- 4Operating expenses as a percentage of net sales increased by 45 basis points, mainly due to higher wage costs.
- 5Net cash used in operating activities was $(3.8) billion, a significant drop from the prior year's $2.9 billion provided.
- 6Free cash flow was negative at $(7.3) billion, impacted by reduced operating cash flows and increased capital expenditures.
- 7Investments in supply chain, customer-facing initiatives, and technology increased substantially.