Key Takeaways
- Walmart’s fourth-quarter revenue grew to $180.6 billion with a 4.1% increase, driven by strong eCommerce and advertising performance.
- Adjusted EPS reached $0.66, with a notable 16% rise in global online sales, enhancing Walmart’s appeal in the beauty and personal care sector.
- The company anticipates continued growth and raised its dividend by 13%, signaling confidence in its expansion plans.
Walmart’s Strong Fourth Quarter Performance
Walmart has announced a robust performance for the fourth quarter, reporting revenue of $180.6 billion, which reflects a 4.1% increase (5.3% in constant currency) compared to the same period last year. The operating income outpaced sales growth, registering at 8.3% (9.4% when adjusted). Key contributors to this growth include a 16% increase in global eCommerce and a significant 29% rise in its global advertising business. These accomplishments signal strong momentum, particularly in Walmart’s efforts to expand its beauty and personal care offerings.
The increase in revenue is attributed primarily to higher gross margins and substantial membership income. Adjusted earnings per share (EPS) reached $0.66, although this figure excludes impacts from equity investments and legal settlements.
In terms of online performance, Walmart’s eCommerce operations saw a 16% increase globally. This growth was bolstered by the effectiveness of its store-fulfilled pickup and delivery services, highlighting Walmart’s ability to meet the evolving shopping habits of consumers who value convenience. This online surge positions Walmart favorably as it aims to cater to beauty consumers who prefer multi-channel shopping experiences.
Operationally, Walmart observed a 53-basis point increase in its gross margin rate. The company attributes part of this improvement to more favorable economics derived from its eCommerce sector. Additionally, Walmart’s U.S. operations maintained healthy in-stock levels, essential for meeting consistent demand, especially in the cosmetics and personal care categories.
Looking ahead, Walmart has provided guidance for the first quarter and fiscal year 2026, anticipating sustained growth and further enhancements to its digital ecosystem. This commitment to innovation is underscored by its announcement of a dividend increase of 13%, raising the payout to $0.94 per share, the largest hike in over a decade. This move reflects Walmart’s confidence in its business trajectory and ongoing expansion plans.
By continuing to strengthen its digital platform and improve the in-store experience, Walmart is strategically positioning itself as a leading choice for shoppers interested in beauty and personal care products. The solid financial results indicate ample opportunities for Walmart to invest not only in product assortment but also in marketing and omni-channel capabilities. This approach is crucial as the beauty market evolves and competition intensifies, reinforcing Walmart’s competitive edge and commitment to delivering value to its customers.
The content above is a summary. For more details, see the source article.
