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Walmart 2013 Annual Report || 15
Walmart’s 2013 Financial Report
In scal 2013, Walmart continued its long history of deliv-
ering strong results for our customers and shareholders. In
fact, over the last decade, Walmart grew sales by approxi-
mately 7 percent on a compounded annual rate, earnings
per share by approximately 11 percent on a compound-
ed annual rate, and returned close to $100 billion to
shareholders in the form of dividends and share repur-
chases. We are proud of our record of consistent and
strong performance, even during times when the glob-
al economy was volatile. Walmart continues to create
value because our strategies are guided by our nancial
priorities – growth, leverage and returns.
We’re excited about Walmart’s future growth opportuni-
ties from a combination of comp store sales, new stores
and e-commerce. We’re gaining market share across al-
most every country in which we operate. And in food and
grocery – our largest part of the overall business – we
continue to gain share as well. Our scal 2014 capital ex-
penditure plan is to spend between $12 billion and $13
billion. This capital plan includes continued growth in
new stores, logistics and supply chain expansion, invest-
ments to drive productivity and reduce expenses, and
Global eCommerce expansion. Our three operating seg-
ments are projected to add between 36 million and 40
million retail square feet this year. Two fundamental op-
erating principles – Everyday Low Cost (EDLC) and Ev-
eryday Low Price (EDLP) – underpin our ability to grow
protably. Oering everyday low prices on a broad mer-
chandise assortment builds customer trust and reso-
nates with consumers globally.
Walmart’s commitment to leverage expenses (to re-
duce operating expenses as a percentage of sales) is the
foundation of driving the productivity loop. With the sav-
ings from lowering costs, we are able to invest in price,
drive greater trac to our stores and our e-commerce
sites, grow sales and deliver strong nancial results. In
fact, achieving greater productivity through EDLC is cen-
tral to the Walmart business model that Sam Walton put
in place in 1962, when he opened the rst store in Rog-
ers, Arkansas. We’re pleased that in scal 2013, Walmart
successfully leveraged operating expenses for a third con-
secutive year. We’ve also made a conscientious eort to
improve capital expenditure eciency by being disci-
plined in new store and club openings and lowering the
cost of remodels. These productivity gains are made pos-
sible by the innovative ideas and the hard work of our 2.2
million associates worldwide. Their collective eorts in
tightly managing costs result in lower prices for our cus-
tomers, strong protability and greater value for our
shareholders.
Delivering strong returns to shareholders remains a top
priority for Walmart. Our AA credit rating is a testament
to Walmart’s strong cash ows, disciplined nancial
management and the strength of our underlying busi-
ness. This strength allows us to invest in growth and pro-
vide strong returns by way of dividends and share repur-
chases. Walmart’s annual dividend per share has
increased about 18 percent on average over the last de-
cade, and we’ve returned over $60 billion in share repur-
chases and dividends over the last ve years alone.
In the next section, you can review our nancial results
and see more clearly how we are delivering shareholder
value through our focus on growth, leverage and returns.
All of us at Walmart are proud of what we have accom-
plished and are excited about our future opportunities.
We’re condent that our strong nancial position, along
with our EDLC and EDLP operating model, will continue
to produce solid results for our shareholders.
Sincerely,
Charles M. Holley, Jr.
Executive Vice President and Chief Financial Ocer
Wal-Mart Stores, Inc.
Our three operating segments are
projected to add between 36 million
and 40 million retail square feet this
year. Two fundamental operating
principles – Everyday Low Cost (EDLC)
and Everyday Low Price (EDLP) –
underpin our ability to grow protably.