Walmart 2010 Annual Report Download - page 4

We strongly believe that Walmart is the best positioned global
retailer and that we can continue to build on our momentum. As
amazed as I’ve been by the global growth I’ve seen during my 15
years at Walmart, I’m even more impressed by the opportunities that
are ahead both in the United States and around the world.
Specifically, we’re focused on enhancing shareholder value by
driving three important priorities: growth, leverage and returns.
Growth. First, we continue to have aggressive growth plans. I believe
that no other global retailer can deliver the kind of growth that
Walmart can over the next several years. In the United States, we
have considerable opportunities in major metropolitan markets,
with innovative new formats and by making our existing assets
more productive. We also have lots of opportunities in Walmart
International by accelerating square footage growth, entering new
markets and making acquisitions. Sam’s membership initiatives will
attract new members. We’ll continue to expand into new channels,
so customers can shop and experience Walmart when, where and
how they want.
Leverage. Second, we are committed throughout the organization
to leverage expenses and improve productivity. Our goal remains
very clear: we will grow operating expenses slower than sales and
grow operating income faster than sales. By lowering expenses,
passing those savings on to customers, bringing more customers
in our doors, and selling more merchandise, we’re reenergizing
the “productivity loop” that’s been so vital to Walmart through-
out our history. We will do even more to leverage the scale,
expenses and expertise of our total company all around the world.
We’ll continue to make investments in technology that are clearly
driving greater efficiency throughout our company. And we plan
to move even quicker and be a more innovative company.
Returns. Third, we have a track record of generating solid returns
at Walmart. Each operating segment has a long-term plan to con-
tribute to strong company returns. Our goal is also to continue to
produce significant free cash flow to drive our ROI performance
and deliver greater shareholder value.
Financial and operating results. Throughout my career, I’ve
always emphasized performance. And I’m really proud of the
performance of our team around the world and the results
Walmart delivered for fiscal year 2010 in a year challenged by a
difficult economy in all of our markets. Our results reflect the
underlying strength of our business and our strategies to
improve shareholder value.
For the full year, Walmart reported earnings per share of $3.72.
Net sales were more than $405 billion this year, with International
net sales exceeding $100 billion for the first time in Walmart’s
history. Our free cash flow performance continues to be
impressive, closing the year with $14.1 billion in free cash flow.
We also posted a pre-tax return on investment (ROI) of 19.3
percent for the year, equal to last year’s ROI performance.
• Growth: We are continuing to grow around the
world. We have many opportunities to grow by
opening new stores, entering new markets,
making acquisitions, integrating online channels,
and developing new, innovative formats to allow
people to experience the Walmart brands.
• Leverage: We are leveraging our scale and best
practices to create competitive advantages. We also
remain committed to leveraging operating expenses
and finding additional ways to benefit from our
global expertise, talented associates and
company scale.
• Returns: We have a rich heritage of delivering
strong shareholder returns. Each operating
segment is focused on contributing to consistent,
strong company returns.
OUR FINANCIAL
Priorities
2 Walmart 2010 Annual Report