Advertising Is Going Strong

Walmart CEO Doug McMillon emphasized Walmart’s unique advantages for advertisers. To connect the dots for advertisers, Walmart plans to acquire TV maker Vizio for $2.3 billion. Impressively, is global advertising rose 28% for the full year.

Walmart reported a great fourth quarter that wrapped up a strong year.

For the quarter ended on January 31st, Walmart reported revenue rose 6% to $173.39 billion, topping LSEG’s estimate of $170.71 billion. However, net income fell to $5.49 billion or $2.03 per share with adjusted earnings amounting to $1.80 per share, also topping LSEG’s estimate of $1.65.

E-commerce sales also did great, rising 23% YoY and topping $100 billion for the first time. In the U.S. alone, e-commerce sales rose 17%. Although the average ticket decreased slightly, customer transactions rose 4.3% compared to last year’s comparable quarter. These figures show that Walmart observed its sales kept going strong even after the ‘most wonderful time of the year’, the holidays season. 

Outlook

As for its fiscal first quarter, Walmart guided for consolidated net sales growth between 4% and 5%, with adjusted earnings of $1.48 to $1.56 per share on a pre-stock split basis.

As for the fiscal 2025, Walmart guided for consolidated net sales growth between 3% and 4%, with adjusted earnings between $6.70 and $7.12 per share, also on a pre-stock split basis.

Walmart has a good reason to be excited about its momentum.

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