Walmart Inc. (NYSE:WMT) Q4 comp sales grew 8.6% and Walmart U.S. eCommerce sales grew 69%. Booming sales with annual revenue of nearly $560 billion resulted in $35 billion of growth; $40 billion of growth in constant currency.
President and CEO, Doug McMillon described Walmart+, its subscription service, as “an important piece of our strategy.” He mentioned that the membership program which launched in the fall, will drive repeat purchases by customers and give the company valuable data it could use to tailor their experience and grow its ads business. The service costs $12.95 a month.
“We completed a strong year and a strong Q4 thanks to our amazing associates. They stepped up to serve our
customers and members exceptionally well during a busy holiday period in the midst of a pandemic,” said Walmart
President and CEO, Doug McMillon. “Change in retail accelerated in 2020. The capabilities we’ve built in previous
years put us ahead, and we’re going to stay ahead. Our business is strong, and we’re making it even stronger with
targeted investments to accelerate growth, including raises for 425,000 associates in frontline roles driving the
customer experience.”
“This is a time to be even more aggressive because of the opportunity we see in front of us,” added McMillon. “The
strategy, team and capabilities are in place. We have momentum with customers, and our financial position is
strong.”
“Our associates responded unbelievably to serve customers in one of the most challenging times we’ve faced. We
have tremendous momentum having just completed a year with record sales and operating cash flow,” said
Walmart Chief Financial Officer, Brett Biggs. “We accomplished this while accelerating our long-term strategy of
transforming Walmart into a dynamic omnichannel business. It’s now time to accelerate even more.”
Fourth-quarter highlights
– Total revenue was a record $152.1 billion, an increase of $10.4 billion, or 7.3%. Excluding currency2
, total revenue would have increased 7.5% to reach $152.3 billion.
– Walmart U.S. comp sales1 increased 8.6% with strength across most key categories.
– Walmart U.S. eCommerce sales increased 69% with strong results across all channels.
– Sam’s Club comp sales increased 10.8% and eCommerce sales grew 42%. Reduced tobacco sales negatively
affected comp sales by approximately 410 basis points. Membership income increased 12.9%, the strongest
growth in six years.
– Walmart International net sales were $34.9 billion, an increase of 5.5%. Net sales in constant currency2
increased 6.3%, led by Flipkart, Mexico and Canada. Changes in currency rates negatively affected net sales
by approximately $0.3 billion.
Walmart Inc. (NYSE:WMT) is a behemoth operating not only as a grocery store and also as a pharmacy. There is not a consumer staple product that Walmart Inc. (NYSE:WMT) does not sell. Walmart Inc. (NYSE:WMT) also offers financial services such as check cashing, wire transfers, and bill payments.
Walmart Inc. (NYSE:WMT)’s CEO Doug McMillon has been with Walmart Inc. (NYSE:WMT) since 2014. He is considered the genius who took Walmart to the next level of e-commerce operations and soon in direct competition with Amazon. From 2009 to 2014 he was president and CEO of Walmart Inc. (NYSE:WMT) International. From 2005 to 2009 he served as president and CEO of Sam’s Club. He is an excellent example how working hard and being loyal pays off in order to be successful. He is an excellent role model for other employees who desire to rise up within the ranks of the company.
NYSE: WMT CWEB Analysts view the stock as a long and short term growth and a great addition to your investment portfolio with an upward momentum of $1000 by 2022 with direct competition to Amazon.
