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Walmart's (WMT) Success Story Painted by Omnichannel Strength
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Walmart Inc.’s (WMT - Free Report) robust niche can be attributed to the strength of its highly diversified business, with contributions spanning various segments, markets, channels and formats. The company has been benefiting from an increase in both in-store and digital channel traffic, reflecting its adept navigation of the evolving retail landscape.
The supermarket giant’s commitment to innovation and adaptability, particularly in the e-commerce space, has been a major driver. Gains from higher-margin ventures, such as advertising, are also noteworthy. These upsides keep the omnichannel retailer going amid challenges like elevated costs and a volatile macroeconomic landscape.
Shares of WMT have rallied 19.2% in the past year compared with the industry’s growth of 18.6%.
Omnichannel Strength
Walmart continues to be driven by its strong omnichannel business, with store-fulfilled delivery sales up 50% in the fourth quarter of fiscal 2024. Impressive store proximity to customers has allowed Walmart to use its stores to fulfill e-commerce orders. The company has been taking several initiatives to enhance e-commerce operations, including buyouts, alliances, and improved delivery and payment systems.
E-commerce sales surged 23% globally on pickup and delivery in the fourth quarter of fiscal 2024 and formed 18% of Walmart’s overall net sales. U.S. e-commerce sales rose 17%, driven by strength in pickup & delivery. International segment e-commerce sales soared 44% due to solid marketplace and omnichannel offerings. At Sam’s Club, e-commerce sales jumped 17% on strong curbside and delivery.
Image Source: Zacks Investment Research
Walmart has been innovating in the supply chain and adding capacity as well as building businesses such as Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+ and Walmart Fulfillment Services. In its fourth-quarter earnings release, WMT announced its deal to buy VIZIO HOLDING to strengthen Walmart Connect in the United States. Other notable strides in the e-commerce realm include the buyout of a major stake in Flipkart, which has been bolstering its International segment. Walmart’s majority stake in India’s digital transaction platform, PhonePe, is also worth mentioning.
Additionally, this Zacks Rank #3 (Hold) company has made aggressive efforts to expand in the booming online grocery space, which has long been a major contributor to e-commerce sales. Walmart has significantly bolstered its delivery capabilities, as exemplified by its Express On-Demand Early Morning Delivery service, Spark Driver platform, the expansion of the InHome delivery service, the introduction of the Walmart+ membership program, Express Delivery, and the acquisition of Parcel, among others.
Moreover, the company’s store and curbside pickup options add to customers’ convenience. As of the fourth quarter of fiscal 2024, Walmart U.S. had nearly 4,600 pickup locations and more than 4,300 same-day delivery stores.
Wrapping Up
The abovementioned upsides reinforce Walmart’s position as a retail powerhouse with a keen eye on sustained success and customer engagement. For fiscal 2025, management expects consolidated net sales growth of 3-4% at cc. Management expects the consolidated operating income to increase roughly 4-6% at cc.
Walmart envisions an adjusted EPS in the band of $6.70-$7.12 in fiscal 2025 on a pre-split basis. On a post-split basis, the company expects adjusted EPS in the range of $2.23-$2.37. The company posted an adjusted EPS of $6.65 in fiscal 2024. For the first quarter of fiscal 2025, the company anticipates consolidated net sales to increase 4-5% at cc, including a nearly 100 bps gain from the leap year.
The Zacks Consensus Estimate for Burlington Stores’ current fiscal-year sales and EPS implies growth of 10.2% and 22.3%, respectively, from the year-ago reported figure.
Abercrombie & Fitch (ANF - Free Report) , a specialty retailer, currently sports a Zacks Rank #1. ANF has a trailing four-quarter average earnings surprise of 715.6%.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year sales and earnings implies growth of 5.6% and 19.1%, respectively, from the year-ago reported figure.
The Kroger Co. (KR - Free Report) , a renowned food retailer, currently carries a Zacks Rank #2 (Buy). KR has a trailing four-quarter average earnings surprise of 8.5%.
The Zacks Consensus Estimate for Kroger's current fiscal-year earnings per share has increased by 1.6% to $4.43 in the past 30 days.
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Walmart's (WMT) Success Story Painted by Omnichannel Strength
Walmart Inc.’s (WMT - Free Report) robust niche can be attributed to the strength of its highly diversified business, with contributions spanning various segments, markets, channels and formats. The company has been benefiting from an increase in both in-store and digital channel traffic, reflecting its adept navigation of the evolving retail landscape.
The supermarket giant’s commitment to innovation and adaptability, particularly in the e-commerce space, has been a major driver. Gains from higher-margin ventures, such as advertising, are also noteworthy. These upsides keep the omnichannel retailer going amid challenges like elevated costs and a volatile macroeconomic landscape.
Shares of WMT have rallied 19.2% in the past year compared with the industry’s growth of 18.6%.
Omnichannel Strength
Walmart continues to be driven by its strong omnichannel business, with store-fulfilled delivery sales up 50% in the fourth quarter of fiscal 2024. Impressive store proximity to customers has allowed Walmart to use its stores to fulfill e-commerce orders. The company has been taking several initiatives to enhance e-commerce operations, including buyouts, alliances, and improved delivery and payment systems.
E-commerce sales surged 23% globally on pickup and delivery in the fourth quarter of fiscal 2024 and formed 18% of Walmart’s overall net sales. U.S. e-commerce sales rose 17%, driven by strength in pickup & delivery. International segment e-commerce sales soared 44% due to solid marketplace and omnichannel offerings. At Sam’s Club, e-commerce sales jumped 17% on strong curbside and delivery.
Image Source: Zacks Investment Research
Walmart has been innovating in the supply chain and adding capacity as well as building businesses such as Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+ and Walmart Fulfillment Services. In its fourth-quarter earnings release, WMT announced its deal to buy VIZIO HOLDING to strengthen Walmart Connect in the United States. Other notable strides in the e-commerce realm include the buyout of a major stake in Flipkart, which has been bolstering its International segment. Walmart’s majority stake in India’s digital transaction platform, PhonePe, is also worth mentioning.
Additionally, this Zacks Rank #3 (Hold) company has made aggressive efforts to expand in the booming online grocery space, which has long been a major contributor to e-commerce sales. Walmart has significantly bolstered its delivery capabilities, as exemplified by its Express On-Demand Early Morning Delivery service, Spark Driver platform, the expansion of the InHome delivery service, the introduction of the Walmart+ membership program, Express Delivery, and the acquisition of Parcel, among others.
Moreover, the company’s store and curbside pickup options add to customers’ convenience. As of the fourth quarter of fiscal 2024, Walmart U.S. had nearly 4,600 pickup locations and more than 4,300 same-day delivery stores.
Wrapping Up
The abovementioned upsides reinforce Walmart’s position as a retail powerhouse with a keen eye on sustained success and customer engagement. For fiscal 2025, management expects consolidated net sales growth of 3-4% at cc. Management expects the consolidated operating income to increase roughly 4-6% at cc.
Walmart envisions an adjusted EPS in the band of $6.70-$7.12 in fiscal 2025 on a pre-split basis. On a post-split basis, the company expects adjusted EPS in the range of $2.23-$2.37. The company posted an adjusted EPS of $6.65 in fiscal 2024. For the first quarter of fiscal 2025, the company anticipates consolidated net sales to increase 4-5% at cc, including a nearly 100 bps gain from the leap year.
3 Retail Picks You Can’t Miss
Burlington Stores (BURL - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. BURL, which operates as a branded merchandise retailer, has a trailing four-quarter average earnings surprise of 10.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Burlington Stores’ current fiscal-year sales and EPS implies growth of 10.2% and 22.3%, respectively, from the year-ago reported figure.
Abercrombie & Fitch (ANF - Free Report) , a specialty retailer, currently sports a Zacks Rank #1. ANF has a trailing four-quarter average earnings surprise of 715.6%.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year sales and earnings implies growth of 5.6% and 19.1%, respectively, from the year-ago reported figure.
The Kroger Co. (KR - Free Report) , a renowned food retailer, currently carries a Zacks Rank #2 (Buy). KR has a trailing four-quarter average earnings surprise of 8.5%.
The Zacks Consensus Estimate for Kroger's current fiscal-year earnings per share has increased by 1.6% to $4.43 in the past 30 days.