Walmart 2012 Annual Report Download - page 5

Walmart 2012 Annual Report 3
To our shareholders, associates and customers
Almost 50 years ago, Sam Walton started Walmart with a single
store in Rogers, Ark., dedicated to providing customers with a
broad assortment of merchandise at great prices. Sam told
Walmart associates: “Customers are the reason why we’re in
business. And when we exceed their expectations, we’re at our
best.” From the day the doors opened in Rogers, on July 2, 1962,
Walmart’s culture has been built on a common purpose: saving
people money so they can live better. That one store changed
the way that retail works, and that change continues to this day.
Today Walmart operates more than 10,000 retail units under 69
different banners in 27 countries. We have more than 2 million
hard-working associates who serve 200 million customers and
members every week. We appreciate all that our associates do
in delivering on our mission and in growing our business.
Our growth is a remarkable achievement. But as far as we
have come, there is so much more that we will do to make a
difference for our shareholders, customers, associates and
communities around the world.
Fiscal 2012 review and key strategies
Last year, Walmart delivered a strong financial performance. Net
sales increased by 5.9 percent to $443.9 billion, and consolidated
operating income grew by 4 percent to $26.6 billion. Our diluted
earnings per share from continuing operations attributable to
Walmart were $4.54 per share, up from $4.18 the previous year.
We leveraged operating expenses for two consecutive years.
Our strong financial position is best illustrated by our ability to
grow. We added 52.2 million square feet through 1,160 additional
units, including acquisitions in the U.K. and South Africa.
We continue to deliver strong returns to shareholders and
returned $11.3 billion to them through dividends and share
repurchases during the year. We were disciplined and focused
on improving our business, and we made good progress.
Our Walmart U.S. strategy is working. Assortments are back.
We are making real improvements in merchandising and
operations and investing in lower prices. We were pleased to
close the year with two quarters of positive sales comps, including
positive traffic in the fourth quarter. We remain focused on
improving comp sales in the year ahead and are confident
that positive trends will continue. Our commitment to price
leadership has never been stronger. Beginning in February,
we initiated our quest to invest $2 billion in price through
expense reductions and productivity improvements during
the next two years.
Walmart International is delivering strong sales and remains our
company’s primary growth engine. With $125 billion in sales, it
is remarkable that our international business alone would now
be among the three largest retailers in the world. Our top
priority is improving returns through increased profitability,
especially in Brazil and China. We are gaining share and are
well-positioned to serve the expanding needs of middle-income
customers in high-growth markets. The “Powered by Walmart”
initiatives will strengthen productivity and reduce expenses.
Michael T. Duke
President and Chief Executive Ocer
Mike reflects on Walmart’s rich history outside founder Sam Walton’s original office
at the Walmart Visitor Center in Bentonville.