Walmart's recent investment community meeting shed light on the company's robust business strategy and its commitment to driving growth and creating shareholder value. The meeting reaffirmed Walmart's Q1 sales guidance and shared its vision for growth and an enhanced customer experience. The company's FY2026 guidance remains unchanged.
In the two years since its last investor meeting in April 2023, Walmart has made significant strides. The company has generated annual top-line growth of over 5% and adjusted operating income growth of almost 10%, with all business segments contributing to growth. E-commerce sales have grown by over 20% annually for two years, accounting for 18% of net sales. Moreover, Walmart has expanded its delivery catchment to cover 93% of the U.S. in less than three hours.
Membership across formats, including Sam's Club and Walmart+, has experienced accelerated growth, and global advertising has grown to $4.4 billion. The company has made investments in various aspects of its business, including assortment, omni experiences, associates, new stores, automation, fast delivery, and market expansion.
Furthermore, Walmart has invested in price, with over 30,000 items priced lower through its rollback program. The company has also invested in owned brands, such as the launch of better goods, a private brand in food. Additionally, Walmart has renovated 1,930 stores and clubs, built 373 more, and invested $22 billion in capex annually, including $19 billion in the U.S.
Moreover, Walmart has deployed more than $7 billion to share repurchases and raised its dividend by the largest amount in over a decade. The company has also noted that PhonePe has begun preparatory steps for a potential IPO in India.
Today the company's shares have moved 9.2% to a price of $89.35. For the full picture, make sure to review Walmart's 8-K report.
