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BENTONVILLE, Ark – Walmart Inc. posted revenue growth of 5.7% in the fourth quarter, including a 4% comp sales gain in its Walmart U.S. division.
“Our team delivered a great quarter, finishing off a strong year,” chief executive officer Doug McMillon said in a statement. “We crossed $100 billion in eCommerce sales and drove share gains as our customer experience metrics improved, even during our highest volume days leading up to the holidays. We’re proud of the team and excited about building on our momentum as we work to bring prices down for our customers and members.”
Walmart also announced that it is buying smart TV maker Vizio for about $2.3 billion. The move is intended to support further growth in its Walmart Connect advertising business in the United States, which expanded by 22% in the fourth quarter. (Walmart’s global advertising business grew by 33% in the quarter.)
The acquisition of VIZIO and its SmartCast Operating System (OS) would enable Walmart to connect with and serve its customers in new ways including innovative television and in-home entertainment and media experiences. It would also create new opportunities to help advertisers connect with customers, empowering brands with differentiated and compelling opportunities to engage at scale and to realize greater impact from their advertising spend with Walmart. The combination would be expected to further accelerate Walmart’s media business in the U.S., Walmart Connect, bringing together VIZIO’s advertising solutions business with Walmart’s reach and capabilities. These benefits would be further strengthened by the growth of connected TV platforms and Walmart’s industry-leading TV panel sales.
“There is a lot to be excited about with this acquisition,” said Seth Dallaire, executive vice president and chief revenue officer, Walmart U.S. “We believe VIZIO’s customer-centric operating system provides great viewing experiences at attractive price points. We also believe it enables a profitable advertising business that is rapidly scaling. Our media business, Walmart Connect, is helping brands create meaningful connections with the millions of customers who shop with us each week. We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment.”
Other highlights of the quarter included:
- Delivered strong growth in both in-store and digital transaction counts; unit volumes increased Share gains in grocery and general merchandise, primarily among higher-income households Growth in eCommerce of 17%, led by strength in pickup & delivery
- Sales strength led by grocery and health & wellness, while general merchandise sales declined modestly Gross profit rate increased 64 bps; operating expense deleverage of 30 bps
- Inventory declined 4.5% with higher in-stock levels.
The Sam’s Club reported solid comp sales, led by food and consumables as well as increases in transactions and unit volumes, and increased dollar and unit market share in grocery. Sam’s Club also reported a 17% increase in eCommerce sales, led by delivery and curbside pickup, and a 10% increase in membership income.
Walmart international reported net sales growth of 13%, led by its Flipkart, Walmex, and Walmart China bsuinesses, helped by strong growth of festive events. The international business was also helped by an eCommerce sales increase of 44%, led by marketplace and omnichannel offerings, and increased penetration across markets. Walmart’s international advertising business grew 76%, led by Flipkart and Walmex.
