Walmart (NYSE:WMT) released fourth-quarter financial 2023 results that were better than expected by Wall Street.
Walmart’s Q4 revenue was $164.05 billion, up 7.3% year over year, and its adjusted earnings per share were $1.71, above Wall Street expectations in both cases. In an inflationary environment, consumers of middle- and higher-income levels turned to the retail behemoth for value, driving net sales up 7.4% to $162.7 billion for the quarter.
For the fourth quarter of fiscal year 2023, net sales at Walmart U.S. increased by 8.0% over the prior year to $113.7 billion. “Continued significant market share growth in grocery, particularly high-income consumers,” the business reported.
For the 13-week period that concluded on January 27, 2023, U.S. same-store sales for the quarter grew 8.3%, excluding gasoline. Strength in the food categories, private brand sales, and increased ticket and store transactions all helped to enhance overall sales. The number of transactions climbed by 1.8%, and the average ticket increased by 6.3%.
Walmart experienced its highest ever monthly sales volume in December 2022. Same-store sales grew 13.9% from two years prior. Operating income, on the other hand, climbed only 3.8% to $5.4 billion, as a result of lower sustainability income, a reduction in gross profit rate, and largely offset operating expense leverage. The 7% increase in membership income mitigated that, though.
In a conference call with investors, CEO Doug McMillon stressed this benefit of higher-income shoppers. “We’re increasing share across income cohorts, particularly at the higher end, which accounted for nearly half of the gains we saw in the U.S. again, this quarter, and we’re also grabbing a greater share of wallet at Sam’s Club in the U.S. with both mid- and higher-income shoppers,” the company said.
Whenever inflation slows down, McMillon wants to be able to keep its higher-paying clients. We want customers to continue choosing us even once inflation finally declines based on their experiences in our stores and clubs and our present membership, pickup, and delivery services.
About Walmart
Walmart Inc. (NYSE: WMT) helps people around the world save money and live better — anytime and anywhere — in retail stores, online, and through their mobile devices. Each week, over 265 million customers and members visit approximately 11,500 stores under 56 banners in 27 countries and eCommerce websites. Walmart employs over 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart and on Twitter at twitter.com/walmart.
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