Walmart 2014 Annual Report Download - page 7

issues like women’s economic empowerment, healthier foods
and renewable energy. Walmart’s initiatives, in partnership with
many suppliers, have signicantly increased sustainability
throughout the global supply chain, and we will do even more.
Solid performance in a challenging environment.
In scal 2014, consolidated net sales increased $7.5 billion to
more than $473 billion and diluted earnings per share from
continuing operations were $4.85. While we certainly see areas
where we can improve, it’s also a reality that we faced some
challenging consumer environments around the world. Both
developed and developing markets grew slower than most
people would have hoped for. The value we oer enabled us
to grow share almost everywhere, and we’re optimistic that
conditions will moderately improve this year.
Walmart U.S. delivered solid prot growth. Operating income
grew 4 percent on a net sales increase of $5 billion. The U.S.
team did a great job controlling costs and successfully lever-
aged expenses. Walmart International’s net sales increased
1.3 percent to more than $136 billion. We took important steps
to hone our international portfolio and focus investments on
the most protable opportunities to position the business for
future growth. Sam’s Club continued to expand its footprint,
opening 12 new clubs, and enhanced its merchandise oerings
with a sharpened focus around value, quality and exciting
merchandise. Our members saw the value of membership,
and with the fee increase in May, Sam’s Club membership
income continued to grow.
Each operating segment strengthened its e-commerce
platforms, and customers responded, driving annual Global
eCommerce sales, including acquisitions, above the $10-billion
mark, a 30 percent increase. A strong focus on e-commerce
is now fully embedded within each of our businesses and
we’ll increase our investment as e-commerce opportunities
present themselves.
Embracing the challenge to change. After just a few
months into my new role, I have an even deeper appreciation
for Mike Duke’s extraordinary contributions as CEO over the
past 5 years. His work positioned Walmart for long-term success,
and I am one of the many associates who benetted from his
guidance and leadership. His passion for our business and
drive for continuous improvement greatly benetted Walmart’s
associates, customers and shareholders.
I look to the future condent that Walmart has all the ingredients
necessary to prosper in the new retail world that is unfolding.
Our purpose remains clear – to save people money so they
can live better – and the actions we’re taking will expand the
opportunities to fulll that purpose. We’ll analyze and review
everything Walmart is today, and we’ll be willing to change
whatever is necessary to serve customers better than ever.
I rst started working for Walmart 30 years ago when I was a
teenager. I’ve fallen in love with our company, its people, our
purpose and culture. We have a unique culture grounded on
four basic beliefs: service to our customers, respect for the
individual, striving for excellence and acting with integrity.
As CEO, I want to continue to nourish and strengthen these
foundational beliefs. And, I’m excited to increase the pace of
change to ensure we’re serving the customers the way they
want to be served in the future.
Sincerely,
Doug McMillon
President and Chief Executive Ocer
Wal-Mart Stores, Inc.
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