Walmart Reaffirms Strategy Fit for Today and the Future
Company shares its unique position to serve customers and members when they need it most and that U.S. eCommerce business is on track to be profitable this year
Today, Walmart hosted its investment meeting where the company's leadership team highlighted the consistency and strength of the company's business operations and strategy. Walmart showcased its resiliency and its ability to innovate, change, and continue to deliver growth and shareholder value.
Doug McMillon, president and CEO, Walmart Inc., expressed confidence in Walmart's ability to navigate against a more fluid backdrop, given improved business flexibility and profit diversification.
He also emphasized the company's resilience, having successfully managed through periods of uncertainty over the company's history. McMillon also highlighted Walmart's ongoing transformation, driven by investments in customer and member experiences, technology and a flexible business model designed to adapt to changing market conditions.
"While in the short term we are not immune to some of the effects businesses face in today's operating environment, we are uniquely positioned to play offense," McMillon said. "Changes we're making to our business add even more strength and flexibility for our future. We're an ‘and' company. We're people and tech; stores and eCommerce; innovation and execution."
John David Rainey, executive vice president and chief financial officer, Walmart Inc., provided insights into the company's financial framework and strategic investments. He reiterated Walmart's commitment to growing operating profits faster than sales, driven by scaling digital and related businesses, including membership, advertising, data and Fintech.
- Value Creation: Walmart's strategic investments in associate wages, technology, and customer experience have positioned the company for sustained growth.
- Omnichannel Model: The integration of physical and digital capabilities has resulted in share gains, higher returns, and a durable competitive advantage.
- Profit Growth: Walmart's newer digital businesses, such as advertising and data, are significantly boosting profit growth. Additionally, the company also announced that its U.S. eCommerce business is on track to be profitable this year.
Rainey also confirmed the company's priorities in the current operating environment. These include keeping prices as low as we can, leveraging data and automation to further improve the flow of inventory, and managing costs.
The President and CEO for each of Walmart Inc.'s business units – Walmart International, Sam's Club U.S. and Walmart U.S. – also spoke. Key highlights from their presentations are below.
President and CEO, Walmart International, Kath McLay, shared the segment's growth story, which is accretive to enterprise growth in sales and profits. Walmart International is on track to meet its goal set in 2023 of reaching $200 billion in GMV and doubling profits and digital mix by 2028 having grown net sales by 9.1% and operating income 17% in constant currency 1over the past fiscal year.
- Market Leadership: Walmart International is in the right markets to win with a growth focus on Mexico, China, and India and is committed to being the leading omnichannel retailer in every market it operates, leveraging its store network and eCommerce capabilities. In the past two years, Walmart International eCommerce sales grew 45%.
- Innovation and Learning: The company's local businesses are continuously innovating and sharing best practices, enhancing its ability to serve customers better across the globe by leaning on global strategies and platforms. Rapid commerce capabilities are being deployed across growth markets, reaching more customers with more items, even faster, some within minutes.
- Community Impact: Walmart International has more than 500,000 associates and serves more than 95 million customers and members each week. The business shares Walmart's broader purpose of helping people save money and live better - it's deeply felt by customers worldwide, with initiatives that support local communities and create opportunities.
President and CEO, Sam's Club U.S., Chris Nicholas, shared ambitions to double membership over the next eight-10 years, driven by omnichannel advantages, and as a result, more than double sales and profit. Sam's Club U.S. is focused on strong membership for growth, redefining the future of the club model and setting a new standard for retail.
- Membership Trends: Membership is at an all-time high, with membership income up 22% over the last two years. Renewal rates are strong with tenured members above 90%. Membership health metrics are strong - more than half of members are Plus members, and GenZ and Millennial members make up more than half of new members.
- New Clubs: Sam's Club is accelerating its new club growth plans as part of the 30 new clubs announced in January 2023, and expects to build a pipeline to 15 new clubs every year after that for the foreseeable future, expanding its physical reach.
- Full Fleet Revitalization: Sam's Club ‘s Grapevine, TX club experience with ~ 100% scan & go penetration is the model of the future. Over the planning horizon, the company will remodel all 600 clubs as a strategic growth investment, confident in the capital returns the company will see in sales and membership income.
- Digital Engagement: Around 40% of total transactions are digital today including scan & go and members shopping online. The business will leverage enterprise platforms including fulfillment networks to allow Sam's Club to have a national eCommerce presence and grow membership not tethered to a physical club.
President and CEO, Walmart U.S., John Furner, described the opportunity Walmart has to be America's favorite retailer.
- Growth and Potential: There is still substantial upside for further expansion within Walmart U.S.' significant sales growth, which added $121 billion over the past five years. The goal is to become America's favorite place to shop by focusing on a clear customer value proposition - price, assortment, experience, and trust.
- Omnichannel Strategy: Walmart is committed to serving customers through an omnichannel approach, allowing them to shop in-store, online, or through pickup and delivery. The company is well positioned to deliver to 95% of U.S. households in under three hours later this year.
- Business Mix Accelerators: Walmart U.S. is also investing in key business accelerators that not only fuel growth, but bolster profitability and drive incremental margins - Walmart+, Walmart Connect, Data Ventures, and Fintech.
- Supply Chain Transformation: Walmart's supply chain is rapidly transforming to leverage independent assets (stores, fulfillment and distribution centers, pickup, and delivery) into one omnichannel supply chain network using data, intelligent software, and automation. This transformation is improving inventory management, enabling faster and more precise fulfillment, and reducing our costs to serve. Today, more than 50% of our eCommerce fulfillment center volume flows through our next-generation fulfillment centers and more than half of our stores are receiving freight from automation. As a result, we're processing more units through our distribution centers and fulfillment centers at lower costs.
A recap of the meeting can be found here.
About Walmart
Walmart Inc. (NYSE:WMT) is a people-led, tech-powered omnichannel retailer helping people save money and live better - anytime and anywhere - in stores, online, and through their mobile devices. Each week, approximately 270 million customers and members visit more than 10,750 stores and numerous eCommerce websites in 19 countries. With fiscal year 2025 revenue of $681 billion, Walmart employs approximately 2.1 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, on X (formerly known as Twitter) at twitter.com/walmart, and on LinkedIn at linkedin.com/company/walmart.
Forward Looking Statements
This release and related management presentation contains statements that may be "forward-looking statements" as defined in, and are intended to enjoy the protection of the safe harbor for forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Assumptions on which such forward-looking statements are based are also forward-looking statements. Statements of our guidance, projections, estimates, expectations, plans, and objectives for the first quarter and remainder of fiscal 2026 in the related management presentation are forward-looking statements. Assumptions on which such forward-looking statements are based are also forward-looking statements. 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Our most recent annual report on Form 10-K filed with the SEC discusses other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in this release or the management presentation. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this release. Walmart cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made in the release are as of the date hereof. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
This release and related management presentation reference certain non-GAAP measures as defined under SEC rules, including net sales and operating income on a constant currency basis, adjusted operating income, free cash flow, and return on investment. Information about the non-GAAP measures as required by Regulation G and Item 10(e) of Regulation S-K regarding non-GAAP measures for the applicable periods can be found in our previously filed reports on Form 10-K and earnings presentations furnished via Form 8-K with the SEC, which are available at stock.walmart.com.
1 See non-GAAP reconciliations for net sales and operating income in constant currency in prior fiscal years' earnings presentations, which are available at stock.walmart.com
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