Walmart, bolstered by consumers across income levels scrambling for low prices to offset the impact of inflation, reported a solid fourth quarter for sales and profitability.
For the period ended Jan. 31, the Bentonville, Ark.-based retail behemoth reported revenues of $180.6 billion, up 4.1 percent from $175.4 billion in the year-ago period.
Operating income reached $7.9 billion, up 8.3 percent from $7.3 billion in the year-ago period.
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Net earnings, however, declined to $5.25 billion, or 65 cents a share, compared with $5.49 billion, or 68 cents a share, in the year-ago period.
Adjusted earnings per share for the most recent quarter were 66 cents. That excludes one-time costs including the effect of a net loss of $0.02 on equity and other investments as well as $0.01 from the proceeds of an opioid-related legal settlement.
Walmart is the first of the nation’s major retailers to report fourth quarter results, and is widely considered a barometer of the consumer mindset and the state of the industry.
“Our team finished the year with another quarter of strong results,” Walmart’s president and chief executive officer Doug McMillion said in a statement Thursday. “We have momentum driven by our low prices, a growing assortment, and an e-commerce business driven by faster delivery times. We’re gaining market share, our top line is healthy, and we’re in great shape with inventory. We’ll stay focused on growth, improving operating margins, and strengthening ROI as we invest to serve our customers and members even better.”
The company said that it raised its dividend 13 percent to $0.94 per share, and noted that it represented the retailer’s largest dividend increase in over a decade.
In another highlight, Walmart completed its $2.3 billion acquisition of Vizio, which sells televisions, sound bars and home theater systems.
Walmart U.S., the retailer’s best performing division, reported Q4 net sales of $123.5 billion, up 5 percent from $117.6 billion in the year-ago period. In the U.S., the company cited market share gains primarily from upper-income households, broad-based sales momentum across merchandise categories, and strong seasonal sales despite the compressed 2024 holiday shopping season.
Walmart also cited expedited delivery channels resonating with customers desiring speed of delivery, and comp sales growth led by transaction counts and unit volumes.
Walmart International reported Q4 net sales of $32.2 billion, slightly down from $32.4 billion in the year-ago period.
For the first quarter of this year, Walmart anticipates sales gains of 3 to 4 percent; adjusted operating income of 0.5 percent to 2 percent, and adjusted earnings per share of $0.57 to $0.58.
For all of 2025, Walmart expects a 3 to 4 percent sales gain, adjusted operating income of 3.5 to 5.5 percent, and adjusted earnings per share of $2.50 to $2.60.
While the quarterly results were for the most part better than expected, apparently Wall Street expected the earnings outlook to be better and pulled Walmart’s stock price down about 8 percent to $95.89 in pre-market trading Thursday.
