Walmart Inc. announced on February 20 that its U.S. online sales increased 17% in the fourth quarter of fiscal 2024 (ending January 31). Global e-commerce sales increased by 23% during the same period, and international e-commerce increased by 44%.
The company's e-commerce sales exceed $100 billion annually, CEO Doug McMillon said in a statement.
“Our e-commerce sales exceed $100 billion, and even during our busiest holiday season, improved customer experience metrics drove our share gains,” he said. Stated.
Consolidated revenue for the quarter increased 5.7% to $173.4 billion. Exceed analyst expectations. For the full year, sales increased 6.0% to $648.1 billion.
Walmart is number 2 in the world top 1000, Web Sales Ranking of North American Online Retailers by Digital Commerce 360. It is also the 9th place. Global online marketplace databaseRanking of the top online marketplaces for Digital Commerce 360.
How much does Walmart make from online sales?
E-commerce continued to be a high-growth area for Walmart in the fourth quarter. This has led to a strong year for U.S. online sales, which were up 27% year over year in the first quarter, 24% in the second quarter, and 24% in the third quarter.
In 2024, online sales accounted for more than 13% of total sales.
Chief Financial Officer John David Rainey told investors that pickup and delivery drove online sales growth. This echoes comments made earlier this year citing the role of omnichannel services in enhancing e-commerce.
“E-commerce sales were driven by continued strong growth in in-store pickup and delivery in the fourth quarter. Over the past two years, in-store delivery sales have nearly tripled and are now and more than $1 billion in funding, which shows why we're so excited about the progress we're making here,” Rainey said.
Sam's Club and other Walmart online sales performance
Sam's Club, Walmart's membership warehouse chain, reported a 17% increase in e-commerce sales in the quarter. Walmart said this growth was primarily driven by in-store and delivery orders. Omnichannel sales continued to drive online sales growth in the third quarter, with Walmart reporting a 16% increase in sales.
Sam's Club net sales increased 2.0% to $21.9 million. In addition to higher transactions and unit sales, growth was primarily driven by food and other consumables, Walmart said.
Sam's Club reported “strong growth” in membership revenue and a 10% increase in total membership.
Walmart did not disclose specific information about its membership program “Walmart+.” However, the retailer reported that it ended the quarter with record Walmart+ membership penetration.
Walmart said its online market has also grown. Rainey said Walmart's marketplace is “the linchpin” of its business because of its ability to sell not only its own products but also third-party products, and its ability to attract customers who view ads on its website. He said there are currently more than 400 million SKUs in Walmart's marketplace, and a “significant portion” of sellers use Walmart's fulfillment services.
Walmart Connect and Vizio
The dealer agreed Acquired smart TV maker Vizio for $2.3 billion. More than 70% of Vizio's TVs are already sold at Walmart. The partnership will give Walmart control of more than 20% of the U.S. television market and further accelerate Walmart Connect's growth in the U.S., the company said.
Walmart Connect is the company's U.S. advertising business, which grew 22% in the fourth quarter. World advertising he increased by 33%.
The Vizio acquisition provides Walmart's registered users, data and in-store advertising capabilities. Walmart will have access to almost all of Vizio's services. 18 million active usersad viewing data, and potentially the ability to track purchases on those ad views.
“This combination is expected to further accelerate Walmart Connect, Walmart’s media business in the U.S., and combine Vizio’s advertising solutions business with Walmart’s reach and capabilities. It will be further strengthened by growth and Walmart's industry-leading TV panel sales,” Walmart said in a press release.
Walmart sales performance by category
The retailer reported that December 2023 was the biggest sales month in U.S. Walmart history.Walmart Marketplace also sets record sales as transaction volume hits all-time high ahead of holiday season Around the time of Cyber 5.
Despite a strong holiday season, sales of toys, electronics, home goods and apparel were weak, Rainey said. Sales of general goods also fell by mid-single digits. At the same time, food sales also increased in the high teens. The change had a negative impact on Walmart's profit margins, he said.
Grocery and health and wellness sales together increased by 3.3% as a percentage of total sales in fiscal 2024, Rainey said. He pointed out that the profit margin is lower than that of general products.
He said nearly half of the growth in grocery sales came from high-income households. Walmart's private label brands also grew in penetration by 1.6% in the quarter, showing that consumers continue to seek out deals. Walmart U.S. CEO John Farner says customers who choose delivery and prioritize convenience tend to be younger, more tech-savvy and have higher incomes than the average Walmart customer. .
“If you look at our business today compared to the previous economic downturn, we now have a more attractive offer, a true omnichannel experience, and more high-income households are shopping across different categories. We're optimistic that beyond that, they'll continue to shop with us: pickup, delivery, and membership,” Rainey said.
walmart revenue
Walmart reported the following for its fiscal fourth quarter ended January 31:
- Consolidated sales increased 5.7% to $173.4 billion.
- Walmart's online sales in the US increased 17%.
- Consolidated net income decreased 2.3% to $5.7 billion.
For the 12 months ended January 31, Walmart reported:
- Consolidated sales increased 6.0% to $648.1 billion.
- Consolidated net income increased 44.1% to $16.3 billion.
- Walmart's online sales exceeded $100 billion annually.
See more earnings reports. Read Walmart's previous earnings report here.
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