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Jan 31, 2023

Walmart Q4 2023 Earnings Report

Walmart's Q4 2023 earnings showcased strong revenue growth, driven by robust performance in stores and eCommerce, with adjusted EPS exceeding expectations.

Key Takeaways

Walmart's Q4 2023 earnings revealed a 7.3% increase in total revenue, reaching $164.0 billion. Walmart U.S. comp sales grew by 8.3%, with eCommerce surging by 17%. The company reported a GAAP EPS of $2.32 and an adjusted EPS of $1.71. The company provided outlook for Q1 and FY24.

Total revenue increased by 7.3% to $164.0 billion, or 7.9% in constant currency.

Walmart U.S. comp sales grew 8.3%, with eCommerce growth of 17%.

Sam's Club comp sales increased 12.2%, with membership income up 7.1%.

Walmart International net sales increased 2.1% to $27.6 billion.

Total Revenue
$164B
Previous year: $153B
+7.3%
EPS
$0.57
Previous year: $0.51
+11.8%
Walmart U.S. comp sales
8.3%
Previous year: 5.6%
+48.2%
Sam's Club comp sales
12.2%
Previous year: 10.4%
+17.3%
Gross Profit
$38.6B
Previous year: $37.3B
+3.4%
Cash and Equivalents
$8.89B
Previous year: $14.8B
-39.8%
Free Cash Flow
$12.2B
Previous year: $11.1B
+10.2%
Total Assets
$243B
Previous year: $245B
-0.6%

Walmart

Walmart

Walmart Revenue by Segment

Walmart Revenue by Geographic Location

Forward Guidance

Walmart provided its outlook for Q1 and full fiscal year 2024, expecting continued growth in net sales and operating income.

Positive Outlook

  • Consolidated net sales are expected to increase 4.5% to 5.0% in Q1 on a constant currency basis.
  • Consolidated operating income is projected to increase 3.5% to 4.0% in Q1 on a constant currency basis.
  • Walmart U.S. comp sales are expected to increase 2.0% to 2.5% for the full year, excluding fuel.
  • Walmart International net sales are projected to increase about 6.0% for the full year on a constant currency basis.
  • Sam's Club U.S. comp sales are expected to increase about 5.0% for the full year, excluding fuel.

Challenges Ahead

  • Consolidated operating income in Q1 will be negatively impacted by 235 bps from LIFO.
  • Adjusted earnings per share for Q1 include an expected $0.03 impact from LIFO.
  • Consolidated operating expenses are expected to increase slightly as a percentage of net sales for the full year on a constant currency basis.
  • Interest expense, net, is projected to increase about $750 million for the full year, representing a $0.20 headwind to EPS.
  • Noncontrolling interest is expected to have a $0.12 headwind to EPS for the full year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income