Walmart 2015 Annual Report Download - page 4

22015 Annual Report
Dear Shareholders,
Associates and Customers:
It’s an exciting time for Walmart. From the U.S. to the U.K., from
Mexico to China, and across all the markets we serve, retail is
changing in fundamental ways. Our future is bright because
we’re increasing our investments in associates, stores and
e-commerce capabilities to prepare for the way customers will
want to shop with us in this new era of retail.
Each week, we serve close to 260 million customers in our
stores, in 27 countries, and through our websites globally. While
language and culture may differ, remarkable similarities exist
globally in what customers expect from a retailer. Whether it’s a
young mom in Toronto or a retired couple in Phoenix, custom-
ers everywhere want to save money and save time. They want
to shop on their terms in a manner that’s easy and convenient.
They seek broad choices in assortment. And, regardless of how
they shop, in stores or on their mobile device, they expect a great
price and experience. At Walmart, our enterprise strategy guides
how we fulfill those expectations and deliver on our customer
proposition. We’ll drive sales growth by executing well, in stores
and e-commerce, every time we serve customers.
Delivering a solid nancial performance
I’m encouraged that Walmart’s fiscal 2015 revenue grew
by more than $9 billion to nearly $486 billion and earnings
per share were $4.99, a nearly 3 percent increase from the
prior year. But, we have higher expectations. Our priority
is to run great stores, clubs and e-commerce everywhere
we operate to grow the business.
Walmart U.S. delivered net sales of $288 billion, a more
than 3 percent increase, and improved its sales and
operating income trends each consecutive quarter
during the year. I’m pleased by the positive comp sales
growth, especially the strong performance from
Neighborhood Markets, but we’re not satisfied. The
Walmart U.S. team is implementing a broad
range of initiatives focused on strengthening
our assortment (especially the fresh offering),
driving the integration of e-commerce with our
stores, and improving the customer experience.
For example, in February, we announced a
$1 billion investment in our U.S. hourly associates
to provide higher wages, more training and
increased opportunities to build a career with
Walmart. These are strategic investments in our
people to reignite the sense of ownership they have in our stores
and foster an improved customer experience to drive sales growth.
Walmart International produced solid constant currency sales and
operating income growth. On a constant currency basis, net sales
surpassed $141 billion, while operating income increased to more
than $6 billion. I’m pleased that we’re running better stores in our
International markets. Operations in Canada, Mexico and China
continue to improve, leading to stronger sales and profitability.
The U.K. market has become fiercely competitive, and in Brazil, we
continue to work on improving performance. Across International,
our commitment to a compelling fresh food offering and innova-
tions in e-commerce, like grocery home shopping, will be important
growth drivers for the future.
The emphasis of the Sam’s Club team on making membership
more rewarding helped drive net sales of $58 billion and an
increase of more than 10 percent in membership income.
Members appreciate the value-added benefits offered by Sam’s
Club like Plus Cash Rewards and the suite of comprehensive
business member services. The team is focused on bringing
merchandise excitement and newness to drive sales. In addition,
Sam’s Club continues to strengthen digital integration with clubs
through initiatives like Club Pickup.
Our 22 percent growth in global e-commerce sales surpassed
the overall market and was supported by enhancements to our
Almost
260M
Customers served
weekly in our stores
in 27 countries
and through
websites globally
Save
Money.
Live
Better.