While many other retailers are struggling to maintain the same comparable store sales levels and earnings of a year earlier, Walmart continues to be a standout among those merchants that sell food.
That continued success was illustrated by very healthy Q4 2024 sales and profits for the world’s largest retailer. Virtually every metric was strong including a 4 percent comp store gain at its more than 5,000 U.S units (including Sam’s Club and Neighborhood Markets). Total U.S. sales grew by 3.4 percent and Q4 earnings in the U.S. increased 12.9 percent to $6.1 billion for the period ended January 31. Other overall highlights included surpassing the $100 billion mark in global ecommerce sales and a 22 percent sales gain at Walmart Connect, the company’s advertising business.
For its full fiscal year, Walmart’s revenue reached a record high of $648.1 billion, and its adjusted operating income was 10.2 percent, a faster growth rate than sales. Walmart said that it currently has $9.9 billion in cash and equivalents on hand.
“Our team delivered a great quarter, finishing off a strong year,” said CEO Doug McMillon. “We crossed $100 billion in ecommerce sales and drove share gains as our customer metrics improved, even during our highest volume days leading up to the holidays. We’re proud of the team and excited about building on our momentum as we work to bring prices down for our customers and members.”
Prior to its Q4 and year-end financial release, Walmart announced that it was returning to its fundamental brick-and-mortar roots as an additional growth opportunity. It said that over the next five years, it will add 150 new stores to its fold, the first significant store expansion plan since 2017 when it shifted most of its cap-ex into digital enhancement. Earlier in 2024, the retailer said it would also remodel 650 existing stores over the next few years.
It’s been a busy two months for the company which also announced that it would acquire TV manufacturer Vizio Holding Corp. for $2.3 billion. The Irvine, CA-based firm also owns the SmartCast operating platform which currently has 18 million active accounts with a growth rate of 400 percent since 2018. Walmart believes the acquisition aligns well with the company’s goals including an opportunity to grow its retail media business – Walmart Connect.
In January, Walmart announced a 3-for-1 stock split, its first since 1999. The Bentonville, AR-based mega-merchant said all current shareholders will receive two additional shares for each share held. Those new shares were issued on February 26.
Also in January, Walmart said it would offer its U.S. store managers annual stock grants beginning in April. The grants, which could be as high as $20,000 worth of Walmart’s stock (trading at approximately $166 per share pre-split, an increase of about 43 percent over the last five years), come on the heels of an annual wage increase for the company’s top store executives from $117,000 annually to $128,000 which began on February 1.