Figure**: Career Retail Network.
On February 20, Walmart released its financial results for the fourth quarter and full year of fiscal 2024 ended January 31, 2024.
In the fourth quarter of fiscal year 2024, Walmart's total revenue was US$173.4 billion (about RMB 12,468.).6.7 billion yuan), a year-on-year increase of 57%；The operating profit was 7.3 billion US dollars (about 52.4 billion yuan).9.2 billion yuan), a year-on-year increase of 304%；Net profit attributable to ordinary shareholders was 549.4 billion US dollars (about 39.5 billion yuan.)0.6 billion yuan); Gross margin improved to 233%。
For the full year of fiscal 2024, Walmart's total revenue reached US$648.1 billion (about 46,602 yuan).9.2 billion yuan), a year-on-year increase of 60%；The operating profit was 27 billion US dollars (about 1941.).4.8 billion yuan), a year-on-year increase of 322%。
Walmart also released guidance for fiscal 2025 in its earnings report. Consolidated net sales are expected to increase 4% to 5% year-over-year and consolidated revenue is expected to increase 3% to 45%。Full-year fiscal 2025 consolidated net sales are expected to increase by 3% to 4% year-over-year, and consolidated revenue is expected to increase by 4% to 6% year-over-year.
Walmart Global CEO Dong Minglun said that in the coming year, the company plans to open about 230 stores around the world, of which Sam's Club in the Chinese market will be the focus of its expansion.
Walmart China
Sales in fiscal year 2024 will be nearly 128.7 billion yuan
According to the performance data, all of Walmart's businesses increased year-on-year. In the fourth fiscal quarter, Walmart's U.S. sales were $117.6 billion, up 4% year-on-year; Walmart International's net sales were $31.2 billion, up 13% year-on-year; Sam's Club (US) sales were $21.9 billion, up 3% year-over-year1%。
In fiscal year 2024, Walmart's U.S. sales were $441.8 billion, up 56%；Walmart International's net sales were $111.7 billion, up 106%；Sam's Club (US) sales were $86.2 billion, up 4% year-over-year8%。
In the global e-commerce sector, Walmart has also shown strong growth momentum. Net e-commerce sales for the full year reached $30 billion, up 23% year-on-year, breaking the $100 billion mark. Sam's Club performed particularly well in the e-commerce space, with a 17% increase in sales and a 10% increase in membership revenue for the full year. In the U.S., Sam's Club saw a 3% increase in compound sales, while e-commerce sales soared 17%.
Picture**: Walmart.
In terms of international business, Walmart International's sales increased by 10% in the fourth quarter, with the Chinese market contributing significantly. The festival was strong, with e-commerce sales in the international business increasing by 44% year-on-year, and e-commerce penetration reaching 25% for the first time. The pace of new store openings has not stopped, with 110 new stores opening in the quarter.
Focusing on the Chinese market, Walmart still performed well. Net sales in the fourth fiscal quarter were US$4 billion (about 287 yuan.).6.3 billion yuan), a year-on-year increase of 113%, comparable sales increased by 66%, the growth rate slowed down month-on-month. Net sales of e-commerce increased 11%, slowing sequentially. Walmart said this was due to the continued growth of Sam's Club and e-commerce businesses in China, as well as the improvement of operational efficiency.
Although the late Chinese New Year this year had some impact on sales growth, Sam's business and e-commerce business in the Chinese market remained strong. During the fourth fiscal quarter, Walmart China's gross profit margin was relatively stable, and e-commerce distribution costs were further reduced.
Previously, Walmart China disclosed that in the first three quarters of fiscal 2024, net sales achieved double-digit growth. Among them, Q1 net sales were $5.3 billion, a year-on-year increase of 283%；Q2 net sales were $4.1 billion, up 21. year-over-year7%；Q3 net sales were $4.5 billion, up 253%。Based on this calculation, Walmart China's full-year net sales in fiscal year 2024 will be about 17.9 billion US dollars (about 128.7 billion yuan).3.3 billion yuan).
Sam turns on "Hurricane" mode
Walmart executives highly recognized the strong growth of Sam's Club and e-commerce businesses as important growth engines for the company. In the Chinese market, e-commerce penetration is at an all-time high of 48 percent, and far exceeds the 25 percent in the rest of Walmart International. Catherine McClay, CEO of Walmart International, emphasized that China's e-commerce business has achieved profitability, which is due to the rapid development of China's e-commerce market and Walmart's precise layout.
Sam's Club has performed particularly well in the Chinese market and has become an important growth engine for Walmart in China. By the end of 2023, Walmart had 47 Sam's stores in China, a number that has grown rapidly compared to the past few years.
Picture**: Walmart.
Walmart President and CEO Dong Minglun spoke highly of Sam's development in China, and said that Walmart is still full of confidence in the Chinese market despite the competitive pressure of the "Hema Sam Battle".
He also revealed that Walmart also plans to open about 230 stores in markets outside the United States in the coming year. Among them, Sam's Club in the Chinese market will be the focus of store opening.
This is in line with the information previously disclosed by Walmart China. The company said last year that it expects six to seven new Sam's stores to open each year in the future. In other words, Sam's will start the "hurricane" mode in China, from the opening of the first store in 1996 to 46 stores in December last year, Sam's original average annual store opening was only 17.
According to incomplete statistics, in 2024, Sam's Club is expected to open 6 stores in China, including Nanjing Jiangbei store, Chengdu Wuhou store, Wuhan Jiang'an store, Quanzhou Jinjiang store, Shaoxing store, and Dongguan store, and the above stores have started recruitment. Among them, the Nanjing Jiangbei store is scheduled to open in June, which may become Sam's first store in China this year.