Walmart's Latest Results: A Blip or a Trend?

In the world of retail, Walmart (NYSE: WMT) has long been an icon, embodying the spirit of affordability and convenience. However, recent financial results have raised questions about the company's trajectory, with investors wondering if this discount retailer giant is facing new challenges. Let's delve into the latest numbers and the implications they hold for Walmart's future.

Walmart's fourth quarter and full-year 2024 results, released in February 2024, painted a mixed picture. Total revenue increased by a respectable 5.7% to $173.4 billion, with eCommerce sales topping $100 billion for the year. However, earnings per share (EPS) dropped by 12.5% to $2.03, and operating income growth slowed to 30.4%. These figures suggest a tougher environment for Walmart, which has traditionally relied on its Every Day Low Prices strategy to attract and retain customers.

The growth in eCommerce sales, a 23% increase over the previous year, is a positive sign, indicating a shift in consumer behavior. However, the 43% surge in eCommerce sales in the previous year suggests that Walmart may be facing headwinds in maintaining its high growth rates. The company's omnichannel approach, which combines in-store and online shopping experiences, has been a significant driver of eCommerce sales. In Q4 FY24, global e-commerce sales accounted for 28% of total sales, with strength in store-fulfilled pickup & delivery and marketplace contributing to this growth.

Walmart's international expansion has also played a crucial role in its eCommerce success. Between Q4 FY24 and Q3 FY25, global e-commerce sales increased by 28%, driven by the strength of Walmart International. Net sales growth for Walmart International reached 10.6% (constant currency) in Q3 FY24 and 12.4% (constant currency) in Q3 FY25. This international expansion, coupled with strategic investments in omnichannel experiences and technology, has fueled Walmart's e-commerce growth.

However, Walmart's competitors are not standing still. Amazon, for instance, reported $212 billion in e-commerce sales in 2023, with projections suggesting continued growth. While Walmart's e-commerce growth rate is impressive, its competitors' sheer scale and dominance pose a significant challenge. To maintain its market position, Walmart must continue innovating and investing in its e-commerce platform while exploring strategic partnerships and acquisitions to expand its reach and offerings.



In conclusion, Walmart's latest results suggest a challenging environment for this discount retailer. While eCommerce sales growth is a positive sign, the company must adapt and innovate to maintain profitability in the face of increased competition. Investors should monitor Walmart's future performance closely, as these results hint at potential hurdles for this retail giant.