Walmart 2008 Annual Report Download - page 4

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In a more challenging economic and competitive environment,
we drove the right strategy for our customers and for our business.
And with the economic environment unlikely to change this year,
the same opportunity is continuing to present itself.
Fiscal year 2008 ended as another record year for your Company.
Total net sales increased 8.6 percent to $375 billion. We added
about $30 billion in sales, which is equal to adding the annual sales
of a Fortune 75 business. Even more impressive, Wal-Mart exceeded
$100 billion in sales during the fourth quarter – a rst for any global
retailer. And, we accomplished this during a quarter when most of
retail was going in the other direction.
Our earnings were strong. Earnings per share from continuing
operations for the scal year were $3.16 per share, up from $2.92 per
share last year. We also delivered a record return to our shareholders
through more than $11 billion in share repurchases and dividends.
In addition to our pricing strategy, we were able to deliver a record
year by making progress in a number of other areas. The management
team began implementing a new capital eciency model and is
now being more precise in deciding which projects we pursue and
how those projects drive value for our shareholders.
Gaining Momentum
Wal-Mart Stores U.S. nished the year with a strong second half,
particularly in grocery, health and wellness and entertainment.
Apparel and home are expected to continue to improve steadily
this year. Eduardo Castro-Wright and his team put a real emphasis on
improving operations and merchandising management. Eduardo’s
management team was strengthened through internal promotions
and external recruitment. Improvements in U.S. marketing also were
a very positive force. In the United States, the team executed in a way
that followed some of Sam Walton’s best advice: “The secret of suc-
cessful retailing is to give your customers what they want.”
Sam’s Club made a strong contribution to the Company’s results
and, under Doug McMillon’s leadership, had a record year in its own
right. Wal-Mart’s mission of saving people money so they can live
better applies equally to Sam’s Club. Small businesses have always
relied on Sam’s Club to thrive and did so even more in the past year
to get through some tough times.
To our shareholders, associates and customers:
When I look back over this past year, one thing stands out very clearly. The hard work and exceptional
efforts of our two million associates, managers and leaders around the world paid off by year-end.
In fact, the year really took off during the second half. What brought it all together was Wal-Mart
living the mission of saving people money so they can live better. Whether it was in the United States,
the United Kingdom, Mexico or Brazil, we positioned ourselves as the unbeatable price leader.
Our customers appreciated it and our shareholders understood it.
Lee Scott,
President and Chief Executive Officer
Sales increased 8.6 percent to $375 billion. We added
about $30 billion in sales, which is equal to adding
the annual sales of a Fortune 75 business. Even more
impressive, Wal-Mart exceeded $100 billion in sales
during the fourth quarter – a first for any global retailer.
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