Walmart Reports Strong Fourth-Quarter Results
Walmart shared its fourth-quarter earnings on Thursday, revealing impressive results as online sales reached a historic high, driven by consumer demand for value and convenience.
The retailer’s fiscal sales for the quarter hit $190.7 billion, indicating a year-over-year increase of 5.6%. In the U.S., comparable sales grew by 4.6%, thanks to a 2.6% rise in transaction value and a 2% bump in average spending per shopper.
Interestingly, food prices only saw a marginal increase of 0.6% compared to last year, with some categories, like eggs and dairy, experiencing price drops.
Global e-commerce sales surged by 24% during this quarter, with a notable 27% growth in the U.S. Online sales now make up 23% of total sales, marking the highest proportion in Walmart’s history.
Growth was further supported by a nearly 50% increase in in-store deliveries, highlighting Walmart’s efforts to enhance delivery speed, reaching most U.S. households within hours.
The retailer is also gaining traction across various income levels, including higher-income households. This is a positive indication that its pricing strategies and convenience initiatives are appealing to a broader audience.
Earnings for the quarter surpassed overall sales growth. Adjusted operating income rose by about 10%, whereas sales growth was roughly 5%. This boost in profit stemmed from higher-margin areas like advertising and membership programs. Worldwide advertising revenue climbed 37%, including a 41% increase in Walmart Connect in the U.S., while membership fee revenue went up by more than 15%. Combined, these fees accounted for nearly a third of operating income for the quarter.
Looking ahead, Walmart anticipates sales growth between 3.5% and 4.5% and expects operating profit to increase between 6% and 8% for the current fiscal year. This trajectory suggests that U.S. consumers remain focused on value, and Walmart’s ongoing investments in digital services and faster delivery options bolsters its market position.
