Walmart 2012 Annual Report Download - page 18

16 Walmart 2012 Annual Report
2012 Financial Report
Understanding our nancial focus
These are exciting times at Walmart – for shareholders,
associates and our customers. We are on track to accelerate
the momentum of the past year by adhering to a disciplined
strategy for operating and investing in our global business.
Walmart’s Everyday Low Cost (EDLC)/Everyday Low Price (EDLP)
business model is an approach that wins with our customers.
Walmart’s financial priorities – growth, leverage and returns –
drive our decisions and strategies. In Fiscal 2012, Walmart
delivered net sales growth in all operating segments. For
the second consecutive year, we “leveraged,” meaning the
company reduced operating expenses as a percentage of
sales. We delivered strong returns to shareholders through
dividends and share repurchases. Walmart’s earnings remained
strong throughout challenging economic environments.
In fact, during the last decade, earnings increased at a com-
pound annual growth rate of nearly 12 percent. It is a strong
performance record, and one that we intend to build upon.
We’re focused on improving net sales through comparable
store growth and new units. We plan to further strengthen
Walmart’s price position by leveraging expenses as a percent-
age of sales by an additional 100 basis points over the next
five years. We are investing these savings in price in our U.S.
businesses, while expanding operating margins in international
segments. We strengthened technology and optimized our
supply chain. This allows us to operate for less, sell for less and
grow sales – all part of the “productivity loop” – a virtuous
cycle that benefits shareholders and customers alike.
We are proud of our AA credit rating, the highest in the retail
industry, as it’s a testament to Walmart’s strong cash flows,
efficient use of working capital and sound financial manage-
ment. We’ll execute disciplined growth, while incorporating
new initiatives to design and build the most cost-effective
stores in the world. And, we remain committed to continuing
our long history of a growing dividend and share repurchases.
In fact, over the last five years, we’ve returned about $61 billion
to our shareholders through these means.
As you review our financial results, know that our foremost
objective is to deliver shareholder value. We’re focused on
increasing earnings per share and returns (through dividends
and share repurchase) and maintaining strong stable returns
on investment. Through disciplined execution of our key
priorities, we are working to ensure that Walmart remains
the world’s best-positioned retailer, both for customers
and for shareholders.
Charles M. Holley, Jr.
Executive Vice President and Chief Financial Officer
Neil M. Ashe
Executive Vice President,
President and Chief Executive Officer,
Global eCommerce
Rosalind G. Brewer
Executive Vice President,
President and Chief Executive Officer,
Sam’s Club
M. Susan Chambers
Executive Vice President, Global People
Leslie A. Dach
Executive Vice President,
Corporate Affairs
Michael T. Duke
President and Chief Executive Officer
Rollin L. Ford
Executive Vice President and
Chief Administrative Officer
Jeffrey J. Gearhart
Executive Vice President,
General Counsel and
Corporate Secretary
Charles M. Holley, Jr.
Executive Vice President and
Chief Financial Officer
C. Douglas McMillon
Executive Vice President,
President and Chief Executive Officer,
Walmart International
William S. Simon
Executive Vice President,
President and Chief Executive Officer,
Walmart U.S.
S. Robson Walton
Chairman of the Board of Directors
Steven P. Whaley
Senior Vice President and Controller
Executive Officers