Walmart performance in FY2019
A brief overview of walmart’s financial performance in 2019.
Walmart is the leading retail brand of US with a strong international presence. The company sells across 27 countries under 58 banners and ecommerce channels. Total number of walmart stores worldwide is now above 11,300. Walmart experienced an impressive rise in net sales and revenue in FY19. Retail as well as ecommerce sales experienced impressive growth. During the last three fiscal years, the net sales and consolidated revenue of Walmart have grown faster. In 2018, its revenue climbed past 500 billions for the first time. In FY 2019, the company retained its momentum and the consolidated revenues rose by around 14 Billion US dollars. The company has continued to strengthen its position worldwide in major markets through partnerships and acquisitions.
FY 2019 full year highlights:
- Total revenue grew by $14.1 Billion from $500.3 Billion in 2017 to $514.4 Billion in 2018.
- $27.8 Billion in operating cash flow. $13.5 billion returned to shareholders through dividends and share repurchases.
- Consolidated net sales grew from $495.8 Billion to $510.3 Billion.
- Consolidated Net Income (attributable to Walmart) down from $9.9 Billion to $6.7 Billion.
- Operating income grew from $20.44 Billion to $21.95 Billion.
FY 2019 segment-wise performance :
- Net sales of Walmart US grew from $318.5 Billions in FY2018 to $331.7 Billions in FY-2019.
- Grocery merchandise segment in Walmart US delivered strong performance.
- Net sales of Walmart International grew from $118.1 Billion to $120.8 Billion.
- Consolidated Net sales of Sam’s club declined from 59.2 Billions to 57.8 Billions.
- Walmart International achieved total revenues of $122.1 billions and net sales of $120.8 Billions in FY 2019.
- Ecommerce sales rose 21% at Sam’s club.
FY 2020 Guidance:
- Consolidated net sales growth -> At least 3 percent in constant currency,
- Comp sales growth -> Walmart U.S.: +2.5 percent to +3 percent, excluding fuel • Sam’s Club: around +1 percent, excluding fuel; around +3 percent, excluding fuel and tobacco
- Walmart U.S. eCommerce net sales growth -> Around 35 percent
- Walmart International net sales growth -> Approx. 5 percent in constant currency
- Consolidated Operating Income -> decline by a small single-digit percentage, including Flipkart; Increase by minor single-digit percentage range, excluding Flipkart
- Walmart U.S. grocery pickup and delivery -> Around 3,100 grocery pickup locations by the end of FY20 • Around 1,600 grocery delivery locations by the end of FY20
- Capital expenditures - Around $11 billion -> Focus on store remodels, customer initiatives, eCommerce, technology and supply chain.
- New Units -> addition of fewer than 10 stores to Walmart US; Addition of a little above 300 new stores to walmart International in Walmex and China mainly.
Other important developments during FY 2019.
- Addition of around 1,000 grocery pickup locations
- Collaboration with Ford to test grocery delivery with self-driving cars
- - Remodeled approximately 500 U.S. stores
- Launch of 17,000 virtual reality training devices
- U.S. starting wages raised for hourly associates to bring average hourly total compensation and benefits to above $17.50
- Launch of Checkout with Me in U.S. stores, to allow customers to checkout from anywhere
- Launch of new features for the Walmart.com Marketplace, (includes free two-day shipping on millions of new items and customers can return marketplace items in stores)
- Launch of Fanatics store on Walmart.com
- • Launched Apple store and Nike store on Jet.com
- Launch of Lord & Taylor shop on Walmart.com
- Partnership with Advance Auto Parts on Walmart.com announced.
- Acquisition of virtual reality studio, Spatialand ; Bare Necessities, a specialty retailer focused on women’s fashion; ELOQUII, a digitally-native brand focused on women’s fashion
- Opening of first food manufacturing facility in the U.S., a milk processing plant
- Announcement of a high-tech distribution center, with ability to move 40 percent more product than a traditional DC
- Announcement of a high-tech consolidation center with ability to receive, sort and ship freight and enable 3 times more volume
- Jet announced new fulfillment center in Bronx, NY
- Acquisition of majority stake in Flipkart Group, India’s leading eCommerce platform
- Launch of online marketplace in Canada
- Launch of the first Walmart Rakuten Ichiba Store, the first Walmart eCommerce store in Japan
- Joint venture with Rakuten for grocery delivery in Tokyo
- Walmart India is India’s "Top 10 Best Workplaces in Retail, 2018"
- Walmart India is one of "Top 100 Best Companies for Women, 2018”.
Read more - Walmart Q4FY19 Earnings Release Final.