On February 20, 2025, Walmart Inc (WMT, Financial) released its 8-K filing for the fourth quarter of fiscal year 2025, showcasing robust financial performance. The company reported a revenue of $180.6 billion, surpassing the analyst estimate of $180,009.81 million. The GAAP earnings per share (EPS) stood at $0.65, slightly above the estimated EPS of $0.64. The adjusted EPS was $0.66.
Company Overview
Walmart Inc (WMT, Financial) is the leading retailer in the United States, known for its strategy of offering low-priced goods to drive store traffic and product turnover. With over 4,600 stores in the U.S. and more than 10,000 locations globally, Walmart serves approximately 240 million customers weekly. In fiscal 2024, Walmart generated over $440 billion in domestic sales, with Sam's Club contributing an additional $86 billion, and $115 billion in international sales.
Performance Highlights and Challenges
Walmart's fourth-quarter results were marked by a 4.1% increase in revenue, or 5.3% in constant currency, and an 8.3% rise in operating income. The company's eCommerce segment grew by 16% globally, driven by faster delivery times and increased market penetration. However, challenges such as the timing of Flipkart's Big Billion Days sales event affected growth in the international segment.
Financial Achievements
Walmart's financial achievements are significant in the retail industry, particularly in the defensive sector. The company's gross margin rate improved by 53 basis points, led by Walmart U.S., and the global advertising business grew by 29%. These achievements underscore Walmart's ability to maintain strong financial health and market competitiveness.
Key Financial Metrics
| Metric | Q4 FY25 | Q4 FY24 | Change |
|---|---|---|---|
| Net Sales (Walmart U.S.) | $123.5 billion | $117.6 billion | 5.0% |
| Operating Income (Walmart U.S.) | $6.5 billion | $6.1 billion | 7.4% |
| Net Sales (Walmart International) | $32.2 billion | $32.4 billion | -0.7% |
| Operating Cash Flow | $36.4 billion | N/A | Increase of $0.7 billion |
Analysis of Performance
Walmart's performance in Q4 FY25 reflects its strategic focus on eCommerce growth and operational efficiency. The company's ability to increase its operating income faster than sales growth highlights its effective cost management and pricing strategies. The acquisition of VIZIO Holding Corp. and the impact of currency fluctuations present challenges, but Walmart's strong market position and financial health provide a solid foundation for future growth.
Our team finished the year with another quarter of strong results. We have momentum driven by our low prices, a growing assortment, and an eCommerce business driven by faster delivery times. We're gaining market share, our top line is healthy, and we're in great shape with inventory. We'll stay focused on growth, improving operating margins, and strengthening ROI as we invest to serve our customers and members even better.
- Doug McMillon, President and CEO, Walmart
Overall, Walmart Inc (WMT, Financial) has demonstrated resilience and adaptability in a challenging retail environment, positioning itself for continued success in the coming fiscal year.
Explore the complete 8-K earnings release (here) from Walmart Inc for further details.
