Walmart released its Q4 and FY22 earnings on Thursday. The total revenue for Walmart’s Q4 FY22 was $152.9 billion, up 0.5%. Comp sales grew 5.6% in Q4 with market share gains in grocery. eCommerce sales grew 1% in the U.S., 70% on a two-year stack. International net sales decreased 22.6%, or $7.9 billion. The guides for FY23 are in line with growth outlined last February, and share repurchases of at least $10 billion are planned for this next fiscal year.
“We had another strong quarter to finish off a strong year,” said Doug McMillon, president and CEO of Walmart. “We have momentum in our business in all three segments. We’re being aggressive with our plans and executing on the strategy. It’s exciting to see how the teams are simultaneously navigating today’s challenges and reshaping our business.”
- Walmart delivered strong holiday results globally. Total revenue was $152.9 billion, up 0.5%, negatively affected by $10.2 billion due to divestitures.
- Strong sales in Walmart U.S. with market share gains in grocery. eCommerce sales grew 1% and 70% on a two-year stack.
- Competitive pricing remains in focus globally. Consolidated gross profit rate up 10 bps; 54 bps in Walmart U.S.
- Sam’s Club comp sales1 increased 10.4%, and 21.2% on a two-year stack. Membership income increased 9.1%.
- Walmart International net sales were $27.0 billion, a decrease of $7.9 billion, or 22.6%, negatively affected by $10.1 billion due to divestitures. China, Mexico and Flipkart delivered strong growth.
- Navigated higher supply chain costs and pandemic-related challenges well, while executing strategic initiatives. Consolidated operating expenses as a percentage of net sales was relatively flat.
- Consolidated operating income was $5.9 billion, an increase of 7.3%. Adjusted operating income2 increased 5.9%. Both were negatively affected by about 60 basis points due to divestitures.
- Company prioritizes in-stock levels. Inventory up 26% globally; 28% in the U.S., affected by higher cost of goods, mix, and higher in-transit shipments.
- Total revenue was $572.8 billion, up 2.4%, negatively affected by $32.7 billion related to divestitures. Excluding currency2 , total revenue would have increased 1.6% to $568.2 billion.
- Walmart U.S. comp sales1 increased 6.4% and 15.0% on a two-year stack.
- Walmart U.S. eCommerce sales grew 11.0% and 90% on a two-year stack.
- Robust growth in marketplace and fulfillment services in the U.S., Mexico and India. Added approximately 20,000 new sellers to the U.S. marketplace.
- Global advertising business3 reached $2.1 billion as the company’s flywheel accelerates. In the U.S., active advertisers using Walmart Connect increased 136%.
- Sam’s Club comp sales1 increased 9.8% and 21.6% on a two-year stack. Membership income increased 11.3%.
- Walmart International net sales decreased 16.8%, negatively affected by approximately $32.6 billion related to divestitures.
- The company generated $24.2 billion in operating cash flow and returned $15.9 billion to shareholders through dividends and share repurchases.
- GAAP EPS of $4.87; Adjusted EPS2 of $6.46.
- Repurchased $9.8 billion in shares for the fiscal year, representing around 50% of the $20 billion authorization announced last year.
1 Comp sales for the 13-week and 52-week periods ended January 28, 2022 compared to the 13-week and 52-week periods ended January 29, 2021, and excludes fuel. See Supplemental Financial Information for additional information. 2 See additional information at the end of this release regarding non-GAAP financial measures. 3 Our global advertising business includes $1.6 billion recorded in net sales, and $0.5 billion recorded as a reduction to cost of sales, depending on the nature of the advertising arrangement.