Walmart Reports Record Q4 and FY21 Revenue

• Walmart U.S. Q4 comp sales grew 8.6 percent and Walmart U.S. eCommerce sales grew 69 percent
• Q4 FY21 GAAP EPS of ($0.74); Adjusted EPS2 of $1.39. Decision to repay property tax relief in the U.K. lowered GAAP EPS and Adjusted EPS by $0.07; Covid-related costs were $1.1 billion in Q4.
• Walmart continues to build the next generation business model, investing in automation to fuel future sales and earnings growth. FY22 capital investments are expected to be nearly $14 billion to build supply chain capacity and automation to stay ahead of demand, improve the customer experience and increase productivity.
• Walmart will also invest in U.S. wages, raising the associate average to above $15 per hour.
• Net sales, operating income and EPS are expected to decline in FY22 primarily due to the impact of anticipated divestitures. Excluding the effect of divestitures, net sales are expected to grow low single-digits with operating income and EPS expected to be flat to up slightly.
• The company increased its dividend for the 48th consecutive year and approved a new $20 billion share repurchase program.

Today, Walmart will host its annual meeting for the investment community. During the meeting, Walmart’s leadership team will highlight how the company will build on its strong performance in FY21 and existing momentum with customers. The company’s strong financial position makes it the right time to accelerate investments in key areas, enabling it to grow faster while leveraging its unique assets to build a business model that will define the next generation of retail.

The company’s integrated omnichannel strategy focuses on:

• Being the primary destination for customers providing value on items they want and need supported by increasingly efficient pickup and delivery, which will drive accelerated growth.
• Innovating to enhance a seamless, digital customer experience designed to deepen customer relationships and increase share of wallet, enabling the company to diversify the business model by growing related businesses with accretive margins such as marketplace, advertising, financial services and data monetization.
• In the U.S., the company is continuing to invest to provide more customers with access to high quality, preventative and affordable healthcare to complement its other healthcare offerings, including providing vaccinations across the country and in geographies the federal government defines as medically underserved.
• Continuing to invest in associates and create opportunities by raising wages for an additional 425,000 frontline associates after raising wages for 165,000 associates’ last fall.
• Actively managing the portfolio and deploying capital to priority areas such as capacity and automation in DCs, FCs and market fulfillment centers to accelerate sales and profit growth.
• Creating shared value for all stakeholders, including associates, customers, shareholders, business partners, suppliers and the planet.

For the full report, click here.