Walmart Gains Market Share With Another Strong Quarter
Walmart Inc. has posted another strong quarter, reporting revenue of $180.6 billion, up 4.1%, for the three-month period ended Jan. 31.
In the company's fourth quarter, gross margin rate was up 53 basis points, led by Walmart U.S.
Operating income increased $0.6 billion, or 8.3%, due to higher gross margins and growth in membership income. Walmart also benefited from improvements in e-commerce. Global e-commerce sales grew 16%, led by store-fulfilled pickup and delivery and U.S. marketplace.
Walmart logged a strong holiday season, with e-commerce sales shooting up 20% in the United States. That marked the 11th straight quarter of double-digit gains. E-commerce at Sam’s Club U.S. was up 24%.
Delivery speed has become a real advantage for the company. In Q4, Walmart expanded U.S. store-fulfilled delivery areas. The mass retailer can now reach 93% of U.S. households with same-day delivery. In addition, Walmart become the first to integrate pharmacy, grocery and general merchandise in a single online order.
Q4 comparable sales increased 4.6% for Walmart’s U.S. business and 6.8% for Sam’s Club, excluding fuel.
In the Walmart U.S. segment, customers’ store visits and purchases climbed as transactions rose 2.8% and average ticket increased 1.8% year over year. Higher-income customers continue to lead share gains for the company.
“Visitation Trends and Shopping Behaviors at Walmart & Target,” a recent report from Santa Cruz, Calif.-based location analytics and insights firm Placer.ai, points out some potential advantages over competitors like Target: “Walmart seems to attract more repeat monthly visitors (who visit the chain at least twice a month), perhaps thanks to the chain’s extensive grocery offerings and to its popularity among rural and semirural segments who may not have a variety of retail options to frequent,” the report reads.
According to data published by Chicago-based consumer insights company Numerator, Walmart has indeed become a grocery leader, capturing 20.9% of grocery market share. The Kroger Co. is a distant second, with 9.1%.
“Our team finished the year with another quarter of strong results,” said Doug McMillon president and CEO of Walmart. “We have momentum driven by our low prices, a growing assortment, and an e-commerce business driven by faster delivery times. We’re gaining market share, our top line is healthy, and we’re in great shape with inventory. We’ll stay focused on growth, improving operating margins and strengthening ROI as we invest to serve our customers and members even better.”
One of those investments involves the retail media space. During Q4, Walmart completed its acquisition of Vizio, which includes the SmartCast Operating System. According to the retailer, the $2.3 billion deal will “bring to market new and differentiated ways for advertisers to meaningfully connect with customers at scale and boost product discovery, helping brands achieve greater impact from their advertising investments with Walmart Connect – the company’s retail media business in the U.S.”
In Q4, Walmart's global advertising business grew 29%, including 24% for Walmart Connect.
Adjusted EPS of 66 cents in Q4 excludes the effect, net of tax, from a net loss of 2 cents on equity and other investments as well as 1 cent from the proceeds of an opioid-related legal settlement.
For FY2025, Walmart’s revenue was $681.0 billion, up 5.1%. Operating income was up $2.3 billion, or 8.6%, growing faster than sales. The company has raised dividend 13% to 94 cents per share, its largest increase in more than a decade.
Looking ahead, the company has issued guidance for FY2026, with net sales expected to grow 3% to 4% and adjusted operating income in constant currency to grow 3.5% to 5.5%.
Each week, approximately 270 million customers and members visit Walmart’s more than 10,750 stores and numerous e-commerce websites in 19 countries. With FY2025 revenue of $681 billion, Walmart employs approximately 2.1 million associates worldwide. Bentonville, Ark.-based Walmart U.S. is No. 1 on Progressive Grocer’s 2024 list of the top food and consumables retailers in North America. PG also named Walmart one of its Retailers of the Century.
