Walmart : Earnings Release (Earnings Release FY 2025)

Published: 2025-02-20 07:03:13 ET WMT

Walmart reports fourth quarter results

BENTONVILLE, Ark., February 20, 2025 - Walmart Inc. (NYSE: WMT) announces fourth-quarter results with strong growth in revenue and operating income. Globally, eCommerce grew 16% with penetration up across all segments. Walmart U.S. comp sales up 4.6%2 with positive growth in general merchandise. Looking ahead, the Company issues guidance for FY26 with net sales expected to grow 3% to 4% and adjusted operating income in constant currency ("cc")1 to grow 3.5% to 5.5%, including a headwind of 150 basis points from the acquisition of VIZIO Holding Corp. ("VIZIO") and lapping leap year.

Fourth Quarter Highlights

Full Year Highlights

Doug McMillon

President and CEO, Walmart

Key Financial Metrics

Dollars in billions, except per share data. Dollar and percentage changes may not recalculate due to rounding. Charts may not be to scale.

Balance Sheet and Liquidity

1See additional information at the end of this release regarding non-GAAP financial measures.

2Comparison period per-share amounts have been retroactively adjusted to reflect the February 23, 2024 stock split.

3Debt includes short-term borrowings, long-term debt due within one year, finance lease obligations due within one year, long-term debt and long-term finance lease obligations.

4$12.0 billion remaining of $20 billion authorization approved in November 2022. cc - constant currency

Business Highlights

and Strategic Initiatives

Dollars in billions, except as noted. Dollar and percentage changes may not recalculate due to rounding.

Walmart U.S.

Q4 FY25

Q4 FY24

Change

FY25

FY24

Change

Net sales

$123.5

$117.6

$5.9

5.0%

$462.4

$441.8

$20.6

4.7%

Comp sales (ex. fuel)2

4.6%

4.0%

4.5%

5.6%

Transactions

2.8%

4.3%

Average ticket

1.8%

-0.3%

eCommerce contribution to comp

~290 bps

~240 bps

Operating income

$6.5

$6.1

$0.4

7.4%

$23.9

$22.2

$1.7

7.8%

Adjusted operating income1

$6.5

$6.1

$0.4

7.4%

$24.0

$22.2

$1.9

8.4%

Walmart U.S.

Walmart International

Q4 FY25

Q4 FY24

Change

FY25

FY24

Change

Net sales

$32.2

$32.4

$(0.2)

(0.7%)

$121.9

$114.6

$7.2

6.3%

Net sales (cc)1

$34.3

$32.4

$1.8

5.7%

$125.1

$114.6

$10.4

9.1%

Operating income

$1.4

(2.4%)

$5.5

$4.9

$0.6

12.1%

Operating income (cc)1

$1.6

$1.4

$0.1

10.1%

$5.7

$4.9

$0.8

17.0%

Walmart International

Sam's Club U.S.

Q4 FY25

Q4 FY24

Change

FY25

FY24

Change

Net sales

$23.1

$21.9

$1.2

5.7%

$90.2

$86.2

$4.1

4.7%

Net sales (ex. fuel)

$20.8

$19.4

$1.4

7.1%

$79.8

$75.1

$4.7

6.3%

Comp sales (ex. fuel)1

6.8%

3.1%

5.9%

4.8%

Transactions

5.4%

3.6%

Average ticket

1.3%

-0.4%

eCommerce contribution to comp

~280 bps

~190 bps

Operating income

$0.6

$0.0

(7.4%)

$2.4

$2.2

$0.2

9.7%

Sam's Club U.S.

Guidance

The following guidance reflects the Company's expectations for the first quarter and fiscal year 2026 and is provided on a non-GAAP basis as the Company cannot predict certain elements that are included in reported GAAP results, such as the changes in fair value of the Company's equity and other investments. Growth rates reflect an adjusted basis for prior year results.

Additionally, the Company's guidance assumes a generally stable consumer and continued pressure from its mix of products and formats globally.

First quarter

The Company's first quarter fiscal 2026 guidance is based on the following Q1 FY25 figures: Net Sales:

$159.9 billion, adjusted operating income1: $7.1 billion, and adjusted EPS1: $0.60.

Consolidated metric

Q1 FY26

Net sales (cc)

Increase 3.0% to 4.0%

• Including approximately 100 bps headwind from lapping leap year

• Including approximately 15 bps tailwind from acquisition of VIZIO

Adj. operating income (cc)

Increase 0.5% to 2.0%

• Including approximately 250 bps headwind from lapping leap year

• Including approximately 70 bps headwind from acquisition of VIZIO

Adjusted EPS

$0.57 to $0.58, including approximately $0.02 headwind from currency

Fiscal year 2026

The Company's fiscal year guidance is based on the following FY25 figures: Net sales: $674.5 billion,

adjusted operating income2: $29.5 billion, and adjusted EPS2: $2.51.

Consolidated metric

FY26

Net sales (cc)

Increase 3.0% to 4.0%

• Including approximately 20 bps headwind from lapping leap year

• Including approximately 20 bps tailwind from acquisition of VIZIO

Adj. operating income (cc)

Increase 3.5% to 5.5%

• Including approximately 70 bps headwind from lapping leap year

• Including approximately 80 bps headwind from acquisition of VIZIO

Interest, net

Increase approximately $100M to $200M

Effective tax rate

Approximately 23.5% to 24.5%

Non-controlling interest

Relatively flat

Adjusted EPS

$2.50 to $2.60, including approximately $0.05 headwind from currency

Capital expenditures

Approximately 3.0% to 3.5% of net sales

cc - constant currency

About Walmart

Walmart Inc. (NYSE: WMT) is a people-led, tech-powered omnichannel retailer helping people save money and live better - anytime and anywhere - in stores, online, and through their mobile devices. Each week, approximately 270 million customers and members visit more than 10,750 stores and numerous eCommerce websites in 19 countries. With fiscal year 2025 revenue of $681 billion, Walmart employs approximately 2.1 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy, and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart, on X (formerly known as Twitter) at twitter.com/walmart, and on LinkedIn at linkedin.com/company/walmart.

Investor Relations contact: Steph Wissink - [email protected]

Media Relations contact: Molly Blakeman - (800) 331-0085

Forward-looking statements

This release and related management commentary contains statements or may include or may incorporate by reference Walmart management's guidance regarding adjusted earnings per share, consolidated net sales, consolidated operating income and consolidated adjusted operating income, consolidated operating expense, net interest expenses, non- controlling interest, capital expenditures, share repurchases, Walmart's effective tax rate for the fiscal year ending January 31, 2025, and comparable sales, among other items. Walmart believes such statements may be deemed to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Act") and are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws. Assumptions on which such forward-looking statements are based are also forward-looking statements. Such forward-looking statements are not statements of historical facts, but instead express our estimates or expectations for our consolidated, or one of our segment's or business', economic performance or results of operations for future periods or as of future dates or events or developments that may occur in the future or discuss our plans, objectives or goals. Our actual results may differ materially from those expressed in or implied by any of these forward-looking statements as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including: capital markets and business conditions; trends and events around the world and in the markets in which we operate; currency exchange rate fluctuations, changes in market interest rates and market levels of wages; changes in the size of various markets, including eCommerce markets; unemployment levels; inflation or deflation, generally and in particular product categories; consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand for certain merchandise; the effectiveness of the implementation and operation of our strategies, plans, programs and initiatives; unexpected changes in our objectives and plans; the impact of acquisitions, investments, divestitures and other strategic decisions; our ability to successfully integrate acquired businesses; changes in the trading prices or fair value of certain equity investments we hold; initiatives of competitors, competitors' entry into and expansion in our markets, and competitive pressures; customer traffic and average transactions in our stores and clubs and on our eCommerce websites; the mix of merchandise we sell, the cost of goods we sell and the shrinkage we experience; our gross profit margins; the financial performance of Walmart and each of its segments, including the amounts of our cash flow during various periods; the amount of our net sales and operating expenses denominated in the U.S. dollar and various foreign currencies; commodity prices and the price of gasoline and diesel fuel; challenges with our supply chain, including disruptions and issues relating to inventory management; disruptions in seasonal buying patterns; the availability of goods from suppliers and the cost of goods acquired from suppliers; our ability to respond to changing trends in consumer shopping habits; consumer acceptance of and response to our stores, clubs, eCommerce platforms, programs, merchandise offerings and delivery methods; cyber security events affecting us and related costs and impact to the business; developments in, outcomes of, and costs incurred in legal or regulatory proceedings to which we are a party or are subject, and the liabilities, obligations and expenses, if any, that we may incur in connection therewith; casualty and accident related costs and insurance costs; the turnover in our workforce and labor costs, including healthcare and other benefit costs; our effective tax rate and the factors affecting our effective tax rate, including assessments of certain tax contingencies, valuation allowances, changes in law, administrative audit outcomes, impact of discrete items and the mix of earnings between the U.S. and Walmart's international operations; changes in existing tax, labor and other laws and regulations and changes in tax rates including the enactment of laws and the adoption and interpretation of administrative rules and regulations; the imposition of new taxes on imports, new tariffs and changes in existing tariff rates; the imposition of new trade restrictions and changes in existing trade restrictions; adoption or creation of new, and modification of existing, governmental policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere and actions with respect to such policies, programs and initiatives; changes in accounting estimates or judgments; the level of public assistance payments; natural disasters, changes in climate, geopolitical events, global health epidemics or pandemics and catastrophic events; and changes in generally accepted accounting principles in the United States.

Our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the SEC discuss other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward- looking statement in the release and related management commentary. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this release. Walmart cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made today are as of the date of this release. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

Walmart Inc.

Condensed Consolidated Statements of Income (Unaudited)

Three Months Ended

Fiscal Year Ended

January 31,

(Amounts in millions, except per share data)

2025

2024

Percent

2025

2024

Percent

Change

Revenues:

Net sales

178,830

171,914

4.0%

$674,538

642,637

5.0%

Membership and other income

1,724

1,474

17.0%

6,447

5,488

17.5%

Total revenues

180,554

173,388

4.1%

680,985

648,125

5.1%

Costs and expenses:

Cost of sales

136,172

131,825

3.3%

511,753

490,142

4.4%

Operating, selling, general and administrative expenses

36,523

34,309

6.5%

139,884

130,971

6.8%

Operating income

7,859

7,254

8.3%

29,348

27,012

8.6%

Interest:

Debt

599

576

4.0%

2,249

2,259

(0.4%)

Finance lease obligations

118

119

(0.8%)

479

424

13.0%

Interest income

(115)

(146)

(21.2%)

(483)

(546)

(11.5%)

Interest, net

602

549

9.7%

2,245

2,137

5.1%

Other (gains) and losses

294

(813)

794

3,027

(73.8%)

Income before income taxes

6,963

7,518

(7.4%)

26,309

21,848

20.4%

Provision for income taxes

1,538

1,840

(16.4%)

6,152

5,578

10.3%

Consolidated net income

5,425

5,678

(4.5%)

20,157

16,270

23.9%

Consolidated net income attributable to noncontrolling interest

(171)

(184)

(7.1%)

(721)

(759)

(5.0%)

Consolidated net income attributable to Walmart

5,254

5,494

(4.4%)

19,436

15,511

25.3%

Net income per common share:

Basic net income per common share attributable to Walmart

0.65

0.68

(4.4%)

2.42

1.92

26.0%

Diluted net income per common share attributable to Walmart

0.65

0.68

(4.4%)

2.41

1.91

26.2%

Weighted-average common shares outstanding:

Basic

8,029

8,070

8,041

8,077

Diluted

8,078

8,102

8,081

8,108

Dividends declared per common share

0.83

0.76

NM: Not Meaningful

Walmart Inc.

Condensed Consolidated Balance Sheets (Unaudited)

January 31,

(Amounts in millions)

2025

2024

ASSETS

Current assets:

Cash and cash equivalents

9,037

9,867

Receivables, net

9,975

8,796

Inventories

56,435

54,892

Prepaid expenses and other

4,011

3,322

Total current assets

79,458

76,877

Property and equipment, net

119,993

110,810

Operating lease right-of-use assets

13,599

13,673

Finance lease right-of-use assets, net

6,112

5,855

Goodwill

28,792

28,113

Other long-term assets

12,869

17,071

Total assets

260,823

252,399

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term borrowings

3,068

878

Accounts payable

58,666

56,812

Accrued liabilities

29,345

28,759

Accrued income taxes

608

307

Long-term debt due within one year

2,598

3,447

Operating lease obligations due within one year

1,499

1,487

Finance lease obligations due within one year

800

725

Total current liabilities

96,584

92,415

Long-term debt

33,401

36,132

Long-term operating lease obligations

12,825

12,943

Long-term finance lease obligations

5,923

5,709

Deferred income taxes and other

14,398

14,629

Commitments and contingencies

Redeemable noncontrolling interest

Shareholders' Equity:

Common stock

Capital in excess of par value

Retained earnings

Accumulated other comprehensive loss

Total Walmart shareholders' equity

Nonredeemable noncontrolling interest

Total shareholders' equity

Total liabilities, redeemable noncontrolling interest, and shareholders' equity

271222

802 805

5,503 4,544

98,313 89,814

(13,605) (11,302)

91,013 83,861

6,408 6,488

97,421 90,349 $ 260,823 $ 252,399

Walmart Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Amounts in millions)

Cash flows from operating activities:

Consolidated net income

Adjustments to reconcile consolidated net income to net cash provided by operating activities: Depreciation and amortization

Investment (gains) and losses, net Deferred income taxes

Other operating activities

Changes in certain assets and liabilities, net of effects of acquisitions and dispositions: Receivables, net

Inventories Accounts payable Accrued liabilities Accrued income taxes

Net cash provided by operating activities

Cash flows from investing activities:

Payments for property and equipment

Proceeds from the disposal of property and equipment

Proceeds from disposal of certain strategic investments

Payments for business acquisitions, net of cash acquired

Other investing activities

Net cash used in investing activities

Cash flows from financing activities:

Net change in short-term borrowings

Proceeds from issuance of long-term debt

Repayments of long-term debt

Dividends paid

Purchase of Company stock

Dividends paid to noncontrolling interest

Sale of subsidiary stock

Purchase of noncontrolling interest

Other financing activities

Net cash used in financing activities

Effect of exchange rates on cash, cash equivalents and restricted cash

Net increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of year

Cash, cash equivalents and restricted cash at end of year

Fiscal Year Ended

January 31,

2025 2024

20,157

16,270

12,973

11,853

878

3,193

(635)

(175)

2,889

2,642

(1,106)

(797)

(2,755)

2,017

3,228

2,515

379

(1,324)

435

(468)

36,443

35,726

(23,783) (20,606)

432 250

4,080-

(1,896)(9)

2,212512

362716

- (3,462)

(2,170) (2,248)

(14,822) (13,414)

(641)

(399)

1,094

9,935

8,841

9,536

9,935

Disclaimer

Walmart Inc. published this content on February 20, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 20, 2025 at 12:02:09.434.