Walmart, Sam's Club See Continued Gains in Q4

Amid high inflation, Walmart saw strong growth in the U.S., as well as internationally, in Q4 with total revenue at $164 billion, a 7.3% increase since last year.

Walmart U.S. comp sales grew 8.3% and 13.9% on a two-year stack. E-commerce growth was 17% and 18% on a two-year stack, showing that consumers are gravitating towards the retail giant’s low prices and large selection. 

“We’re excited about our momentum,” said Walmart President and CEO Doug McMillon.” The team delivered a strong quarter to finish the year, and as our results in the last two quarters show, they acted quickly and aggressively to address the inventory and cost challenges we faced last year. We built momentum in the third quarter and that continues. We are well-positioned to start this fiscal year.”

Part of the growth seen at Walmart’s U.S. stores has been a growing number of consumers purchasing private brand products as they seek money saving solutions.

“There has definitely been a shift, and we see this internally as well and an acceleration in the fourth quarter to more private brand versus branded product,” said John Furner, president/CEO of Walmart U.S. “That shift really began last March, and it continued all year in the fourth quarter and got a bit stronger. There has definitely been some acceleration to private brands in the last 90 days.”

As more shoppers test the waters with private brand products, Furner said the company is continually thinking about making sure that its values are appropriate as the retailer remains focused on helping people save money.

“We don't set targets for branded versus private brand, but we want to be there for any customer and make sure that quality and value are right across all our product lines,” he added.

Walmart-owned Sam’s Club also saw gains as the club sector continues to grow, with comp sales increasing 12.2%, and 22.6% on a two-year stack. Sam’s Club membership increased 7.1% year-over-year, with member count hitting an all-time high. In January, Walmart announced plans to open more than 30 new Sam’s Club locations across the U.S. over the next several years.

Walmart International net sales were $27.6 billion, an increase of 2.1%. Stores in Mexico, China and Canada led the international growth.

For the full year, Walmart’s annual revenue increased 6.7% to $611.3 billion, and U.S. comp sales increased 6.6%. For fiscal 2024, Walmart predicts adjusted earnings of $5.90 to $6.05 per share, below the $6.50 per share analysts had projected. Full-year same-store sales are expected to rise 2.5% to 3%, missing analysts’ expectations for a 3% increase.