Walmart reported stronger general merchandise sales as an important factor in the company’s fourth-quarter financial gains.
Walmart corporate net income was $5.25 billion, or 65 cents per diluted share, versus $5.49 billion, or 68 cents per diluted share, in the year-previous quarter. Adjusted for one-time events, earnings per diluted share were 66 cents versus 60 cents in the year-before period.
A Yahoo Finance-published analyst consensus estimate called for adjusted diluted earnings per share of 65 cents and revenues of $179 billion.
Net sales were $178.83 billion and net revenue, including membership and other income, was $180.55 billion, versus $171.91 billion and $173.39 billion, respectively, in the year-prior quarter, the company stated. Operating income was $7.86 billion versus $7.25 billion in the year-earlier period.
In the United States, Walmart comparable sales advanced 4.9% in the fourth quarter year over year, excluding the impact of fuel price volatility. Fourth-quarter comparable sales at Walmart U.S. were up 4.6% year over year, and those at Sam’s Club gained 6.8% year over year.
Net sales at Walmart U.S. in the quarter were $123.52 billion, with membership and other income at $759 million versus $117.64 and $572 million, respectively, year over year. Net sales at Sam’s Club in the period were $23.1 billion and membership and other income were $595 million versus $21.85 billion and $539 million, respectively, year over year.
For the full year, company net income was $19.44 billion, or $2.41 per diluted share, versus $15.51 billion, or $1.91 per diluted share, in the year-previous. Adjusted diluted earnings per share were $2.51 versus $2.22 in the year before.
Net sales were $674.54 billion and net revenues were $680.99 billion versus $642.64 and $648.13 billion, respectively, in the year prior, the company reported. Operating income was $29.35 billion versus $27.01 billion in the year earlier. Although Walmart made no adjustment to the quarter’s metric, operating income for the full year, adjusted, was $29.75 billion versus $27.11 billion in the period a year past.
In a conference call, Doug McMillon, Walmart president and CEO, said, company topline sales and its contributing elements were an important indication of how the company is succeeding.
“We’re strengthening our ability to serve people how they want to be served in the moment,” McMillan said. “That’s what’s driving our growth. Our prices are low, and we’re becoming more convenient. Customers are shopping with us more often and buying more items including in general merchandise categories, which were up low single digits in Walmart U.S. and Sam’s U.S. in the quarter.”
McMillon added, “Our team finished the year with another quarter of strong results. We have momentum driven by our low prices, a growing assortment, and an e-commerce 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.”
