What drove Walmart's operating profit growth in Q4 2024?

Walmart's operating profit growth in Q4 2024 was driven by several key factors:

1. **Strategic Pricing and Focus on Higher-Margin Businesses**: Walmart's growth in operating income was attributed to strategic pricing efforts and a focus on higher-margin businesses. This indicates a deliberate approach to pricing and product mix that enhanced profitability.
2. **Strong E-commerce and Digital Channel Growth**: The company saw significant increases in e-commerce sales, with a 27% growth in digital sales and a 28% increase in advertising revenue. This shift in sales channel and the ability to generate revenue from digital platforms have contributed to the overall profit growth.
3. **International Market Expansion**: Walmart International reported a substantial increase in sales, with a 12.4% growth in constant currency. The strong performance in international markets, particularly in Mexico, India, and China, has been a positive contributor to the company's operating income.
4. **Membership Income and Diversified Profit Streams**: The company reported a 22% increase in membership income, indicating strong customer engagement and value perception. Newer ventures like marketplace, advertising, and membership have contributed to diversified profits, reinforcing the resilience of Walmart’s business model.
5. **Cost Management and Operational Efficiency**: Walmart has been effective in leveraging technology, such as Generative AI, to enhance customer experience and operational efficiency. This suggests that while sales growth is important, efficient management of costs has also played a crucial role in boosting profitability.

In summary, Walmart's Q4 2024 operating profit growth was driven by a combination of strategic pricing, strong e-commerce and international sales, diversified profit streams, and effective cost management. These factors collectively contributed to the company's financial performance during the quarter.