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Walmart Earning and Revenue

Walmart Earning and Revenue

Walmart Earning and Revenue

Walmart Inc. stands as one of the largest and most influential retailers globally, with a presence that spans across physical stores, e-commerce platforms, and international markets. As of 2024, the company continues to demonstrate remarkable resilience, navigating shifts in consumer behavior, rising e-commerce demands, and supply chain challenges. Walmart’s earnings and revenue are key indicators of its market position and growth trajectory, revealing how it has managed to maintain its leadership in the competitive retail sector.

In this article, we take an in-depth look at Walmart's earnings and revenue for fiscal year 2024 (FY24) and its third-quarter performance, breaking down the numbers, key drivers behind the growth, and its future outlook.

Walmart Fiscal Year 2024 Financial Overview

Walmart Fiscal Year 2024 Financial Overview
Image Source: Walmart Canada

Total Revenue

Walmart’s fiscal year 2024 marked significant growth across its diverse revenue streams, with total revenue reaching approximately $619 billion. This represents a notable increase compared to the previous fiscal year, driven by sustained consumer spending, particularly in the grocery and e-commerce sectors.

The increase in revenue came despite challenges posed by inflationary pressures, rising labor costs, and supply chain disruptions. Walmart’s ability to sustain and grow its revenue is a testament to its resilient business model, which includes a balanced mix of brick-and-mortar stores, online sales, and global operations.

Revenue Growth

Walmart’s revenue growth in FY24 was impressive, showing a 7% increase compared to the previous year. The company’s ability to generate this growth during a period of economic uncertainty is largely due to its strategic investments in e-commerce, technology, and supply chain management. Key contributors to this growth include the company's robust grocery segment, strong international sales, and continued improvements in its digital offerings.

Quarterly Performance Overview

Q3 FY24 Revenue

In Q3 FY24, Walmart posted $155 billion in revenue, marking a 6% increase compared to the same period last year. This growth is reflective of the continued strength in consumer demand, particularly for essential items such as groceries, household goods, and pharmacy products. Additionally, Walmart’s Q3 performance was bolstered by its ongoing digital transformation, with e-commerce sales continuing to rise.

Key Performance Indicators (KPIs)

Several key performance indicators (KPIs) highlight Walmart’s strong quarterly performance:

  • Same-store sales (comparable sales for stores open more than one year) rose by 5.5% in the third quarter, with robust growth in both the U.S. and international markets.
  • E-commerce sales saw a continued surge, increasing by 11% year-over-year, signaling that Walmart’s investments in its digital platform are paying off.
  • International revenue for the quarter stood at $32 billion, driven by solid performances in Canada, Mexico, and other global markets.

These numbers illustrate Walmart’s ability to generate consistent growth across its multiple business segments, even as the broader retail industry faces challenges.

Profitability and Earnings Analysis

GAAP and Non-GAAP Earnings Per Share (EPS)

Walmart’s earnings per share (EPS) in fiscal year 2024 reflected impressive growth. On a GAAP basis, Walmart reported an EPS of $6.08, a 10% increase from the previous fiscal year. This growth reflects the company’s ability to drive profitability through strategic cost-saving measures and enhanced operational efficiency.

On a non-GAAP basis, which excludes certain one-time items such as asset sales and restructuring costs, Walmart reported an EPS of $6.45, reflecting a similar growth trend. This strong performance in earnings highlights Walmart’s ability to generate value for its shareholders, even in a challenging economic environment.

Operating Income

Walmart's operating income for FY24 reached $22 billion, marking a 5% increase from the previous year. This growth in operating income is a result of increased sales and Walmart's ability to control costs. The company's focus on operational efficiency, particularly through supply chain optimization and cost-effective inventory management, has allowed it to enhance profitability.

Net Profit

Walmart’s net profit for the fiscal year 2024 stood at $14.8 billion, representing a 9% year-over-year increase. This strong performance is indicative of the company’s ability to navigate challenges while maintaining strong margins. Walmart’s commitment to reinvesting profits back into growth initiatives such as store modernization, e-commerce expansion, and technology adoption has contributed to both top-line and bottom-line growth.

Key Drivers of Walmart’s Financial Success

Walmart’s ability to drive growth in both revenue and profitability can be attributed to several key factors, including its focus on e-commerce, its leadership in the grocery segment, and its efficiency in cost management. Below, we explore these factors in more detail.

1. E-commerce Expansion

Walmart’s e-commerce business has been one of the most significant drivers of its recent growth. As consumer shopping habits shift toward online and omnichannel experiences, Walmart has invested heavily in its digital platforms to capture a larger share of the online retail market.

In FY24, Walmart’s e-commerce sales grew by 11%, driven by enhanced features such as faster delivery options, the introduction of Walmart+ (its subscription service), and increased use of its mobile app for shopping. Walmart’s $13.7 billion investment in technology and fulfillment infrastructure over the past year has enabled it to offer competitive delivery times, making it a strong rival to e-commerce giants like Amazon.

2. Grocery Segment

Walmart’s grocery business continues to be a major contributor to its revenue, accounting for nearly 56% of total sales in FY24. With its extensive supply chain and cost leadership strategy, Walmart has maintained its dominance in the grocery space.

Walmart’s grocery sales saw a 7% increase year-over-year in Q3 FY24, driven by strong demand for fresh produce, packaged goods, and household essentials. Walmart has successfully leveraged its vast physical store network to support both in-store and online grocery sales, offering customers greater convenience and flexibility.

3. International Markets

Walmart’s international operations continue to be an important source of revenue and diversification. The company operates in over 19 countries, with significant sales in Canada, Mexico, and Chile. Walmart’s international revenue reached $32 billion in Q3 FY24, a 5% increase compared to the same period last year.

Strategic partnerships, such as the acquisition of a controlling stake in Flipkart (India’s leading e-commerce platform), have expanded Walmart’s presence in key growth markets. Walmart continues to invest in expanding its footprint in emerging markets, capitalizing on the growing middle class and the increasing shift toward modern retail formats in developing economies.

4. Cost Management and Supply Chain Efficiency

Walmart’s ability to manage costs and run an efficient supply chain has been a critical factor in driving its profitability. The company has consistently focused on optimizing inventory, reducing waste, and improving supply chain visibility.

In FY24, Walmart made significant investments in automation, including the implementation of robotics in warehouses and the expansion of automated fulfillment centers. These innovations help Walmart reduce operational costs and increase efficiency, ultimately benefiting both its bottom line and its customers.

Walmart’s Digital Transformation and Future Outlook

Walmart’s digital transformation is a key component of its growth strategy. The company continues to invest in artificial intelligence (AI), machine learning, and automation to improve customer experience and enhance operational efficiency. In addition, Walmart’s focus on building an integrated omnichannel shopping experience, combining its physical stores with e-commerce capabilities, positions it well for future success.

Tech Investments

Walmart’s continued investment in AI and technology has allowed it to offer a more personalized shopping experience, improve supply chain forecasting, and automate its warehouses. The company’s $13.7 billion technology investment in 2024 is aimed at enhancing its capabilities in areas such as machine learning, data analytics, and online shopping.

Growth Forecast

Looking ahead, Walmart is expected to continue its growth trajectory, with projected revenue for FY25 to reach $640 billion, driven by continued strength in grocery, e-commerce, and international markets. Additionally, the company’s focus on increasing its digital sales and expanding its offerings through Walmart+ and other services will play a crucial role in sustaining long-term growth.

Conclusion

Walmart’s earnings and revenue performance in fiscal year 2024 reflect the company’s ability to adapt and thrive in an increasingly competitive retail environment. By focusing on key growth drivers such as e-commerce expansion, the grocery segment, international markets, and cost management, Walmart has solidified its position as a retail leader.

As Walmart continues its digital transformation and invests in technology and automation, the company is well-positioned to maintain its dominance in the global retail market. With a strong outlook for the future, Walmart remains a powerful player in both the physical and digital retail spaces.

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